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Taiwan's opposition pushes for China trade referendum

China, Taiwan sign deals worth 5.6 bln dlrs: report
A Chinese local authority has signed contracts with Taiwan companies worth 38.3 billion yuan (5.6 billion dollars), state media reported Friday, as ties between the two rivals continue to thaw. The southwest Chinese municipality of Chongqing signed the agreements Thursday at the start of the Chongqing-Taiwan Week, the China News Service reported on its website. The deals covered a variety of industries, from high-tech manufacturing to agriculture and real estate, according to the report. They are the latest sign of warming relations between the two sides after the China-friendly administration of Ma Ying-jeou assumed power in Taiwan last year. The island has proposed a wide-ranging trade agreement with Beijing to encourage freer cross-strait flow of goods and personnel and to help Taipei tackle the global financial crisis. Taiwan and China split in 1949 at the end of a civil war. Beijing still regards the island as part of its territory awaiting reunification, by force if necessary. Ties worsened significantly under Ma's predecessor Chen Shui-bian, who angered China during his eight years in office with what officials in Beijing perceived as provocative pro-independence remarks. But since Ma took office on May 20 last year, relations have warmed, with the two sides signing agreements that have led to regular direct flights, increased investment opportunities and a boost in tourist arrivals.
by Staff Writers
Taipei (AFP) May 31, 2009
Taiwan's pro-independence opposition on Sunday renewed its pledge to hold a referendum aimed at stopping the Beijing-friendly administration from signing a comprehensive trade pact with China.

The Democratic Progressive Party (DPP) said it hopes to collect at least 80,000 signatures before the end of August in the first part of a two-step process required by law for the campaign, announced last month, to go ahead.

Once it reaches its target figure, the party will then have to enlist the endorsements of up to one million supporters before a referendum can take place.

"Concerns are mounting about signing an ECFA (Economic Cooperation Framework Agreement) with China as it is not a pure trade agreement. Rather it has something to do with sovereignty," DPP spokesman Cheng Wen-tsang said.

"People here are entitled to decide if Taiwan people, through a referendum, approve such an agreement with China," he said.

The Ma Ying-jeou administration is targeting the pact -- similar in scope to a free trade agreement -- with Beijing to boost the flow of goods and personnel across the Strait and to help the island tackle recession.

Chinese President Hu Jintao told visiting Wu Poh-hsiung, chairman of the Kuomintang, in Beijing last week that talks on the ECFA were likely to start in the second half of the year.

Hu said the mainland would like to see an economic agreement that will benefit economic development on both sides and improve people's welfare, according to the Xinhua news agency.

Taiwan's Economic Minister Yiin Chii-ming had defended the trade pact, claiming that the island's economy could rise by 1.4 percentage points by forging an economic pact with China.

In particular, the petrochemical sector, machinery and auto components makers are expected to benefit from closer cross-strait ties, Yiin said.

But the DPP has strongly opposed the potential pact, which it claims would demote Taipei to the status of local government in any rapprochement talks.

China still regards Taiwan as part of its territory awaiting reunification by force if necessary, although the two sides have been governed separately since the end of a civil war in 1949.

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