Taiwan, Japan to sign investment pact
2011-09-21 16:39:57
Taiwan and Japan will sign a historic investment pact Thursday, as China has relaxed previous strong opposition to economic deals between the island and third parties, officials in Taipei said.
The agreement, which will open up Taiwan to Japanese companies, has been hailed by local media as one of the biggest breakthroughs in ties between the two sides since Tokyo switched recognition to Beijing in 1972.
"It will strengthen economic and trade cooperation between Taiwan and Japan to benefit businesses on both sides. It's very significant," foreign ministry spokesman James Chang said Wednesday.
Japanese companies will be given the same rights as local firms so they can invest in Taiwan without the restrictions imposed on other foreign companies and vice versa, according to the Taipei-based United Daily News.
The pact will also pave the way for Taiwan and Japan to sign a broader free trade agreement in the future, the paper said.
It has been made possible by what seems to be a Chinese decision to adopt a more liberal attitude towards Taiwan signing economic pacts.
The apparent change in China's policy followed the signing of the sweeping Economic Cooperation Framework Agreement (ECFA) between Beijing and Taipei last year.
"ECFA definitely has had a positive impact on Taiwan's plans to reach similar deals with other countries," said Maa Shaw-chang, spokesman of Taiwan's Straits Exchange Foundation, which handles China ties.
The de facto Japanese embassy in Taiwan confirmed that there has been "big progress" in the planned deal, but did not elaborate.
The two sides are due to sign the agreement when Mitsuo Ohashi, the head of Interchange Association Japan, is due arrive in Taipei for a visit, the ministry said.
The association handles unofficial ties with Taiwan in the absence of formal diplomatic relations.
Taiwan has been pushing for closer trade ties with Japan, particularly following the signing of ECFA last year, which Taipei said would encourage other countries to follow.
Japan is Taiwan's second largest trade partner after China. In August, Japanese firms invested almost $100 million in the island to become its top foreign investor, according to Taiwan government data.