China and Taiwan in historic talks

Taiwan’s vice president-elect met with Chinese President Hu Jintao today in the highest-level political contact between the two governments in nearly 60 years.

The meeting focused on improving economic relations, a key plank in the platform that boosted incoming Vice President Vincent Siew and President-elect Ma Ying-jeou to victory in Taiwan’s March 22 elections.

Mr Ma and Mr Siew take office on May 20.

Separated amid civil war in 1949, China and Taiwan have had almost no direct contact between their governments. China claims Taiwan as part of its territory and has threatened to invade if the self-governing island tries to make its de-facto independent status formal.

Today, however, Mr Hu sat down with Mr Siew for a low-key but historic meeting on the sidelines of a business conference in the southern Chinese resort of Boao.

The meeting could mark a watershed for relations that have been especially bumpy over the past eight years under independence-leaning Taiwanese President Chen Shui-bian. Mr Siew’s Nationalist Party, however, favours eventual unification with China although Mr Ma has placed the issue on the back burner.

After exchanging pleasantries with the Taiwanese visitor, Mr Hu said that improving relations between the sides needs efforts from both parties.

“On this occasion, I am happy to exchange opinions on the cross-strait economy with Siew,” he said, referring to the 100-mile-wide strait between Taiwan and the mainland.

Mr Siew, who was accompanied by a 12-member Taiwanese delegation, said that closer economic relations between China and Taiwan would facilitate regional peace and improve the lives of ordinary Taiwanese and Chinese.

“Reality proves that cross-strait economic development is the common wish of people on both sides (of the strait),” he said.

Beijing refuses to recognise Taiwan’s elected government, acknowledging Mr Siew only as chairman of the Cross-Strait Common Market Foundation, a private group that seeks to build economic cooperation between China and Taiwan.

Despite the rocky political relations between the sides, their economic ties have been flourishing. Taiwanese companies have already invested more than £50 billion on the mainland and in 2007 bilateral trade – heavily in Taiwan’s favour - exceeded £40 billion.