Three agreements leading to closer cooperation between Taiwan and mainland China in banking, insurance and securities came into effect over the weekend, the island’s financial authority said Sunday.
The three memoranda of understanding, which were signed in November, are the latest step in rapidly improving ties between the two former arch foes, after Ma Ying-jeou became Taiwan’s president in May 2008.
The Financial Supervisory Commission said the MOUs followed pressure from the island’s finance industry for greater access to the huge mainland market.
With the MOUs, “Taiwan’s financial industry can not only serve Taiwanese companies in the mainland but tap the mainland market,” the commission said on its website.
“Since Taiwan and the mainland share the same language and cultural roots, Taiwan’s financial industry stands a good chance of gaining profits.”
Despite lingering hostility between China and Taiwan, local businesses have channeled about 150 billion US dollars into China since Taipei eased an investment ban in the early 1990s.
China took 83.7 billion US dollars of the island’s total exports in 2009, or 41 percent of the island’s overseas sales.
The MOUs focus on supervisory cooperation in the fields of banking, securities, futures and insurance. They provide for thresholds and preferential policies for both sides to enter each other’s financial markets.
Following the MOU, seven Taiwanese bank offices on the mainland can be upgraded to branches.
