Taiwan election: Beijing gives details on Fujian cross-strait ‘model zone’, 3 days before island votes in new president

Joint policy paper comes four months after mainland Chinese authorities outlined ‘interconnected living’ plan
While releasing plan to ‘better leverage’ Fujian’s closeness to Taiwan, Beijing also hits out at island’s ruling DPP over lack of ‘effective’ steps on trade barriers

Taiwan election 2024

William Zheng

Published: 8:53pm, 9 Jan 2024

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Beijing has announced further details of its plan to make the coastal province of Fujian a “model zone” for integrated development with Taiwan, three days before the island elects a new president.

It is the latest in several cross-strait economic policies announced by Beijing in the lead-up to Saturday’s vote and criticised by Taiwan as coercive.

The measures were jointly announced on Tuesday by the mainland Ministry of Commerce, its top economic planning body the National Development and Reform Commission, the Ministry of Industry and Information Technology and the Taiwan Affairs Office – the official agency managing cross-strait ties.

This comes four months after Beijing announced sweeping guidelines on an “interconnected living” plan for Taiwan and Fujian, the southeastern mainland province geographically and culturally closest to the island.

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But the Ministry of Commerce also hit out at Taiwan’s ruling Democratic Progressive Party (DPP) on Tuesday, saying it had not taken any “effective measures” to lift trade restrictions on mainland goods and warning of further retaliatory moves.

Taiwan’s fisheries, machinery, automotive and textile sectors might be targeted for further suspension of preferential tariffs, a ministry spokesman told state broadcaster CCTV. However, Beijing’s carrot-and-stick trade approach to cross-strait ties has also seen a ban on Taiwanese grouper fish and some fruit imports being lifted.

The 21-point blueprint for “peaceful reunification” released on September 12 said authorities aimed to remove constraints on cross-strait trade and investment, as well as on Taiwanese seeking mainland residency, to make Fujian the first-choice mainland gateway for Taiwanese residents and companies.

Expanding on this, the latest policy paper proposes 14 measures across five sectors for Fujian to “better leverage its unique relation with Taiwan” and boost its role as a “demonstration zone” for cross-strait integration.

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This will include support for Taiwanese service trade businesses wishing to invest in Fujian’s Pilot Free Trade Zone, faster customs clearance and mutual recognition of professional qualifications.

However, Taipei has criticised Beijing’s integration plans, including greater cross-strait connectivity, as “wishful thinking” designed to benefit from Taiwanese funds and talent.

The DPP has also stepped up exchanges with Washington in recent years. This has angered Beijing, which sees Taiwan as part of China to be reunited by force if necessary, and such moves as a challenge to its sovereignty.

While most countries, including the United States, do not recognise the self-governed island as independent, Washington is opposed to any attempt to take Taiwan by force and is committed to arming it.

The outcome of the January 13 presidential vote is expected to shape cross-strait relations and even US-China ties.

Taiwan vice-president and ruling Democratic Progressive Party presidential candidate for 2024 election William Lai Ching-te (left) and vice-presidential candidate Hsiao Bi-khim (right), both seen on Tuesday, have been attacked repeatedly by Beijing. Photo: EPA-EFE

Beijing has repeatedly attacked the DPP’s front runner Vice-President William Lai Ching-te and his running mate Hsiao Bi-khim as supporters of Taiwan independence. It strongly favours the main opposition party, the Beijing-friendly Kuomintang.

Last month, Beijing suspended tariff cuts on 12 Taiwanese chemical products, introduced under a landmark trade deal more than a decade ago, accusing Taipei of imposing import “barriers” on mainland goods.

“[The DPP] has engaged in political manipulation, attempting to shift blame and evade responsibility,” a commerce ministry spokesman told CCTV.

Beijing’s December 21 move, which came into effect on January 1, was seen as an early warning of the possible economic fallout of a DPP victory. The party criticised the timing as “obvious meddling in the election”.

The Taiwan Affairs Office said the DPP’s stance on independence was the main barrier to resolving issues related to the 2010 Economic Cooperation Framework Agreement.

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Tuesday’s policy paper from Beijing especially highlighted Fujian’s planned integration with the Quemoy and Matsu island groups, the nearest Taiwanese-controlled territory to the mainland.

Quemoy, also known as Kinmen, is about 2km (1.24 miles) from Fujian’s port city of Xiamen, while Matsu is about 20km from the provincial capital, Fuzhou.

Beijing’s latest directive said the coastal areas of Fujian should strengthen trade links with Quemoy and Matsu by easing tariff and regulatory frameworks and building cooperative development zones.

The plans include helping Fujian to set up e-commerce comprehensive pilot zones catering to the Taiwan market, and a small commodity trading market that would become the leading mainland platform for Taiwan’s small and medium enterprises.

The paper also called for more efforts to help Taiwanese companies in Fujian to invest in advanced manufacturing and hi-tech industries, and for common industrial standards to promote interoperability.

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