Chinese banks offer 19 bn dollars to Taiwanese firms: report

BEIJING: Chinese banks will offer nearly 19 billion dollars in financing to Taiwanese-funded firms on the mainland in another sign of warming ties between the longtime rivals, state media reported Sunday.

The Industry and Commercial Bank of China (ICBC) and the Bank of China will each offer 50 billion yuan (7.3 billion dollars) to Taiwanese-funded businesses, Xinhua said, adding that the China Development Bank will also offer 30 billion yuan.

It is part of a package of measures agreed during a two-day meeting in Shanghai of the Cross-Straits Economic, Trade and Cultural Forum, Xinhua reported, without giving details of the other measures.

The meeting, which finished on Sunday, was attended by Jia Qinglin, the fourth-ranking leader in China's political hierarchy, and Wu Poh-hsiung, chairman of Taiwan's ruling Kuomintang (KMT) party, reports said.

Jia vowed Saturday that China would come to Taiwan's aid if the impact of the global economic crisis worsened, according to Xinhua.

The latest move by China comes after the two sides last week inaugurated direct daily flights and postal and shipping services in a historic move hailed by both sides as cementing a new era in warming ties.

Xinhua quoted Wu as urging the forum to "make up for the time lost in the past."

He said it would also take place again next year and added that he hoped Taiwan's opposition Democratic Progressive Party would be involved next time, according to the report.

Relations between China and Taiwan have improved rapidly since the election in March of Taiwan President Ma Ying-jeou, who has promised closer ties.

His election ended eight years of rule by Chen Shui-bian, whose independence rhetoric inflamed China.

Direct transport was suspended after the two sides split in 1949 following a civil war.

China still regards Taiwan as a renegade province that must eventually come back into Beijing's political fold, by force if necessary, although Ma's election has cooled the atmosphere dramatically.

Chen, who has since been indicted for corruption, had refused the transport links, wary of getting too close to China.

But following Ma's election, top officials from both sides met in Beijing in June for the first direct dialogue between the two parties in 10 years, paving the way for a flurry of steps drawing the two sides closer together.