China, Taiwan Sign Agreements

The Chinese mainland and Taiwan on April 26, 2009 signed three agreements on opening regular flights, boosting cooperation in finance and cracking down on crime, foretelling the realization of decades-long aspiration of comprehensive, direct and two-way links between the two sides. Chen Yunlin, President of the mainland-based Association for Relations Across the Taiwan Straits (ARATS), and Chiang Pin-kung, chairman of the Taiwan-based Straits Exchange Foundation (SEF), signed these agreements in Nanjing, capital of east China’s Province.

Terms of Agreement

Under the fresh agreements, the two sides will launch regular passenger and cargo flights across the Taiwan Strait, which indicates the normalization of cross-Strait air transport service. Before, direct cross-Strait flight services were only provided on weekends and during four major traditional festivals.

In addition to the current 21 terminals, the mainland will open another six, including Hefei, Harbin, Nanchang, Guiyang, Ningbo and Jinan for direct passenger flights. Taiwan has eight terminals.The number of flights will increase to 270 every week from the current 108, according to the agreement.

Mutual Assistance

Under the agreement on financial cooperation, the two sides agreed to boost mainland investment in the island and facilitate financial institutions to set up branches on each other's side. The mainland and Taiwan will continue to discuss issues concerning market access of financial institutions on the either side.

According to the agreement on mutual assistance in criminal matters, the two sides will collaborate in civil and criminal fields and take measures to jointly crack down on crimes, with a special focus on major crimes involving kidnapping, weapons, drugs and human trafficking, and cross-Strait organized crimes.

Economic cases of fraud, money laundering, forging or falsifying currencies, and securities, would also be targeted.

The two sides agreed to exchange crime-related information and help each other investigate cases and collect evidence. Each side is also responsible for helping the other to identify witnesses, seize and repatriate criminals and suspects.

By January 2007, the Chinese mainland and Taiwan had returned to the other side 38,936 criminals, criminal suspects and people guilty of illegal entry since 1990, when the Kinmen Agreement was signed between Red Cross organizations across the Taiwan Strait.

Financial Supervision

China and Taiwan reach an agreement on promoting financial organizations from the mainland and Taiwan to set up branches in each other's side and continue to negotiate on the admittance of financial organizations and related businesses.The two sides also agreed to jointly set up a system for financial supervision and management.

In addition, they agreed to gradually set up a currency clearing system. Commercial banks are allowed to offer cash exchange services. The two sides will also cooperate in developing cash anti-counterfeit technology. The ARATS and the SEF planned to hold the fourth round of talks in Taipei in the later half of 2009.