2006 Taiwan Yearbook
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Many Taiwanese entrepreneurs have set up franchises in China in recent years. Pictured here is one offering a variety of traditional breakfast delicacies.
Many Taiwanese entrepreneurs have set up franchises in China in recent years. Pictured here is one offering a variety of traditional breakfast delicacies.
What's New
  • Proactive management and effective liberalization
  • The National Unification Council has ceased to function and the Guidelines for National Unification have ceased to apply

The Taiwan Strait remains one of the world's most prominent flashpoints in the post-Cold War era. The significance of tensions between Taiwan and China perhaps outweighs that in other areas of concern, such as the Korean Peninsula and the Middle East, as the Taiwan Strait serves as the waterway through which the densely populated and trade-oriented nations of Northeast Asia receive their oil from the Middle East. While China has emerged as the world's fastest growing market and is a magnet of investment for multinational companies, Taiwan continues to play a key role in the global IT industry. In this light, any conflict in the Taiwan Strait would profoundly damage the global economy and threaten regional stability and world security. Maintaining cross-strait peace, therefore, serves not only the interests of Taiwan, China, the United States, Japan, and other Pacific Rim nations, but also the rest of the international community.

Over the past decade, closer economic exchanges between the two sides have failed to nurture closer political interaction. Taiwanese businesses have invested billions of US dollars on the mainland, and both sides have been admitted to the World Trade Organization. Nevertheless, developments in economic relations have yet to entice China into reducing its hostility toward Taiwan. On many occasions, Taiwan's government has shown willingness to resume dialogue and consultation without setting any preconditions. In return, China continues to try to intimidate Taiwan by deploying missiles and troops along its southeastern coast, and obstructs Taiwan's participation in international affairs. Its enactment of an "anti-separation law" (the so-called anti-secession law) in 2005 further cast a shadow on relations between the two sides.

Peace and stability remain key components of Taiwan's cross-strait policy. Taiwan looks forward to a reciprocity of goodwill from China and hopes Beijing will abandon its belligerent stance, replace confrontation with negotiation and conflict with dialogue, and conduct cross-strait relations pragmatically.

This chapter presents an overview of Taiwan-China relations, as well as related policies adopted by the government of Taiwan.

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Historical Overview

Founded in 1912, at the time when Taiwan was under Japanese rule, the Republic of China (ROC) is Asia's oldest constitutional republic. When the Chinese Communist Party established the People's Republic of China (PRC) on the mainland in 1949, the ROC government relocated to Taiwan, where it has maintained effective control over Taiwan, Penghu 澎湖, Kinmen 金門, Matsu 馬祖, and some other islets. The two sides of the Taiwan Strait have since been governed as separate territories and have developed separate identities. As the ROC's largest island, Taiwan is also the home of the nation's capital. The ROC is more commonly known throughout the world as "Taiwan."

Taiwan and China have had no official contact since 1949. In 1979, Beijing began to employ "united front" tactics against Taiwan, to which Taipei responded with the "three noes policy" 三不政策 (no contact, no negotiation, and no compromise 不接觸、不談判、不妥協).

Throughout the 1980s, economic liberalization, social diversification, and political democratization increased in Taiwan and, with the lifting of martial law in 1987, the government adopted a more open policy toward the PRC, popularly known simply as China. Cross-strait economic, cultural, and educational exchanges increased dramatically soon thereafter.

In 1990, the Kuomintang (KMT) party-led government set up the National Unification Council (NUC) 國家統一委員會. In February 1991, the Council drafted the Guidelines for National Unification 國家統一綱領, which called for a phased approach toward unification (see also Developments in 2006 section). President Lee Teng-hui 李登輝 announced the termination of the Period of National Mobilization for Suppression of the Communist Rebellion 動員戡亂時期 in May 1991, acknowledging on a constitutional level the fact that the two sides of the Taiwan Strait are under separate rule.

In response to increased cross-strait exchanges, the Mainland Affairs Council (MAC) 行政院大陸委員會 and the Straits Exchange Foundation (SEF) 海峽交流基金會 were established in 1991 to administer relations between Taiwan and China. The cabinet-level MAC serves as the official administrative agency responsible for the overall planning, coordination, evaluation, and implementation of the government's China policies, while the SEF is a private organization authorized by the government to handle technical and business matters with China. The Act Governing Relations between Peoples of the Taiwan Area and the Mainland Area 臺灣地區與大陸地區人民關係條例, the most significant piece of legislation on cross-strait activities, was promulgated in 1992. Since then, the act has been amended several times. The most recent amendment, also the most extensive revision of this law, was made in October 2003 in order to adapt to the rapidly changing cross-strait relationship.

Cross-strait Consultations

In April 1993, representatives from the SEF and its counterpart in China, the Association for Relations Across the Taiwan Straits (ARATS) 海峽兩岸關係協會, met in Singapore for the first high-level cross-strait talks in over four decades. The discussions were led by late SEF Chairman Koo Chen-fu 辜振甫 and late ARATS Chairman Wang Daohan 汪道涵.

Soon after these talks were held, cross-strait relations began to deteriorate. The PRC authorities indefinitely postponed the second round of Koo-Wang talks, which were scheduled for July 1995 in Beijing, to protest then-President Lee Teng-hui's June 1995 visit to Cornell University, where he had earned his Ph.D.

In March 1996, Beijing test-fired guided missiles off the coast of Taiwan immediately before Taiwan's first direct presidential election. In spite of Beijing's hostile attitude, Taipei has consistently appealed for the resumption of cross-strait consultations.

In October 1998, Koo and Wang finally met again in Shanghai. Although their respective organizations agreed to expand exchanges at various levels, no significant progress was made on the more difficult issues during the meetings.

Beijing again unilaterally suspended negotiations after President Lee Teng-hui described the cross-strait situation as a "special state-to-state relationship" 特殊國與國關係 during an interview with a German radio station in July 1999.

A New Era

A new era in cross-strait relations began with the election of the Democratic Progressive Party (DPP) candidate Chen Shui-bian 陳水扁 as Taiwan's tenth-term president. In his inaugural speech, President Chen made important announcements regarding the policy agenda of his administration.

He first pointed out that as the popularly elected president, he must abide by the Constitution; maintain the sovereignty, dignity, and security of the country; and ensure the well-being of all citizens. In addition, he solemnly declared that, so long as China did not have the intention to use military force against Taiwan, he would not declare independence, change the name of the nation, push for the inclusion of the so-called "state-to-state" description in the Constitution, or promote a referendum on the issue of independence versus unification. Moreover, neither the Guidelines for National Unification nor the National Unification Council would be abolished.

These statements have since been referred to as the "Four Noes Plus One" 四不一沒有 pledge. The president further expressed his hope that the two sides would adhere to the spirit of "goodwill, active cooperation, and permanent peace," while at the same time respecting the free choice of the people of Taiwan.

Taiwan's Goodwill

Since assuming office, President Chen has worked to promote peace and prosperity across the Taiwan Strait. He convened the Supra-party Task Force 跨黨派小組 and the Economic Development Advisory Conference 經濟發展諮詢委員會議 in order to build a consensus between the governing and opposition parties on how to promote and improve cross-strait relations.

During the past few years, many cross-strait policies have been introduced as concrete expressions of goodwill. These include opening the "mini-three-links" 小三通 of direct transportation, postal services, and trade between China and Taiwan's offshore islands of Kinmen and Matsu; expanding the functions and scope of offshore shipping centers; and opening Taiwan to tourism by citizens of China (PRC citizens who reside in or first travel to a third country). Regarding China-bound investments, the "no haste, be patient" 戒急用忍 policy was replaced by the principle of "proactive liberalization with effective management" 積極開放,有效管理.

In addition, Taiwan has allowed its financial institutions to open offices in China, liberalized significantly the import of mainland products into Taiwan, permitted mainland journalists to come to Taiwan, and improved the treatment of the mainland spouses of Taiwan residents. Even though President Chen's efforts have met resistance both within and outside of China, he has persistently reiterated the ROC government's goodwill and continued to promote liberalization measures.


Notable Remarks by President Chen on Taiwan-China Relations

May 20, 2000 Inaugural Speech

... As long as China has no intention of using military force against Taiwan, I pledge that during my term in office, I will not declare independence; I will not change the national title; I will not push for the inclusion of the so-called "state-to-state" description in the Constitution; and I will not promote a referendum to change the status quo in regards to the question of independence versus unification. Furthermore, the abolition of the National Unification Council or the Guidelines for National Unification will not be an issue.

December 31, 2000 New Year's Eve Speech (Bridging the New Century)

In the past, the government adopted the "no haste, be patient" policy in light of the circumstances and needs of that time. In the future, we will adopt the new approach of "proactive liberalization with effective management." ... The integration of our economies, trade, and culture can be a starting point for gradually building mutual trust. This, in turn, can be the basis for a new framework of lasting peace and political integration.

August 3, 2002 Opening Address to the Twenty-ninth Annual Meeting of the World Federation of Taiwanese Associations

Taiwan's own road is Taiwan's road to democracy, to freedom, to human rights, and to peace. ... Taiwan is not a part of any other country, nor is it a local government or province of another country. Taiwan can never be another Hong Kong or Macau, because Taiwan has always been a sovereign state. In short, Taiwan and China stand on opposite sides of the Strait, and there is one country on each side. This should be clear. ... Only the 23 million people of Taiwan have the right to decide the future, fate, and status of Taiwan. ... I sincerely call upon and encourage everyone to consider the importance and urgency of enacting referendum legislation.

May 20, 2004 Inaugural Speech

If both sides are willing, on the basis of goodwill, to create an environment based upon peaceful development and freedom of choice, then in the future, the Republic of China and the People's Republic of China—or Taiwan and China—can seek to establish relations in any form whatsoever. We would not exclude any possibility, so long as any decision is made with the consent of the 23 million people of Taiwan.

October 10, 2004 Address at the National Day Rally

In the long term, Taiwan and China should formally end the state of hostility between them and adopt confidence-building measures through consultation and dialogue. Both sides should review their armament policies and seek to establish a code of conduct as a tangible guarantee of permanent peace in the Taiwan Strait. ... Taiwan's executive branch is formulating a plan that will expedite cross-strait charter passenger and cargo flights.

January 1, 2006 New Year's Day Message

The complex cross-strait economic and trade policies should not be simplified as a dichotomy of either "opening up" or "tightening up"; nor should "proactive liberalization" be given much emphasis while the more important "effective management" is neglected. ... The administration focuses on long-term development, assumes the role of a gatekeeper to guard our nation's economic security against foreseeable risks, and resists currying favor or taking shortcuts. Therefore, "proactive management and effective liberalization" represents the new way of thinking and course of action for our future cross-strait economic and trade policies.

February 27, 2006 Concluding Remarks at National Security Conference

The decision that the NUC should cease to function and the Guidelines for National Unification should cease to apply does not involve changing the status quo. It is based on the democratic principle of popular sovereignty. As long as the principle of democracy is honored and Taiwan's 23 million people's free choice is respected, we will not exclude any possible form cross-strait relations may take in the future. We are, however, adamant that no one set preconditions or set an ultimate goal regarding the people's right to choose.

No Positive Response from China

Regrettably, Beijing has not made any specific and clear positive response to Taiwan's expressions of goodwill. On the contrary, it has continued its attempts to isolate Taiwan diplomatically.

Furthermore, China has refused to renounce the use of force against Taiwan and has continued to expand its military deployments across the Taiwan Strait. At present, China has deployed about 800 missiles targeted at Taiwan, and this number is steadily increasing at a rate of 100 to 120 per year. Annually, it holds large-scale joint military exercises simulating attacks on Taiwan and its offshore islands. These actions gravely threaten the lives and property of Taiwan's people. These unfriendly gestures also seriously threaten stability not only in the Taiwan Strait but the entire region and jeopardize both the national interests of Taiwan and the welfare of its people.

China has demanded repeatedly that Taiwan accept its "one country, two systems" 一國兩制 formula, which is designed to downgrade Taiwan into being a special administrative region under its jurisdiction. China has resorted to all forms of diplomatic maneuvers and propaganda to disseminate information concerning its unreasonable demands to the international community, which has misled some people into attempting to persuade the government and people of Taiwan to accept China's views.

As well, China is pursuing a strategy of "three warfares" 三戰. Composed of psychological warfare, media warfare, and legal warfare, it is focused on battering the morale of Taiwan's people and dividing its society.


Applicability to Taiwan of the “One Country, Two Systems”Formula

Clarification of Taiwan's Stance

China's refusal to engage in dialogue with Taiwan has increased the risk of misunderstanding between the two sides. Under such circumstances, President Chen felt the need to clarify the background of, and considerations behind, his first inaugural speech. Emphasizing that neither Taiwan nor China is subordinate to the other, in his speech of August 3, 2002, the president stated that "Taiwan and China stand on opposite sides of the Strait, and there is one country on each side." This statement was made to emphasize to the international community that Taiwan, as a sovereign nation, cannot be downgraded, marginalized, or treated as a local government. This characterization has been dubbed "one country on each side" 一邊一國.

Response to China's "Anti-separation Law"

On December 17, 2004, China announced that it would adopt an "anti-separation law" in the coming spring to legalize the use of force against Taiwan. The government and people of Taiwan strongly opposed the enactment of this law, fearing that China would then feel empowered to use force at any time to unilaterally change the status quo in the Taiwan Strait. Global powers, including the United States, the European Union (EU), and Japan voiced objections to China's proposed action, repeatedly stating their concern. Nonetheless, China's National People's Congress went ahead and passed the law on March 14, 2005.

In response, President Chen Shui-bian issued a six-point statement on March 17, which may be summarized as follows:

  1. The Republic of China is an independent, sovereign state; Taiwan's sovereignty belongs to the 23 million people of Taiwan; and only the 23 million people of Taiwan can decide their future.

  2. The differences between the two sides of the Strait must be resolved through dialogue based on the principles of democracy, freedom, and peace. Undemocratic or nonpeaceful means, regardless of the "rationale" behind them, will not be tolerated by the international community and will only serve to hurt cross-strait relations and push people on the two sides further apart.

  3. Any law that expressly stipulates the use of violence against others, no matter the reason or pretense, degrades the universal values of freedom, democracy, and respect for human rights, and represents a large step backward for human civilization.

  4. Until Beijing guarantees peace and ceases its belligerent actions, the EU has no reason to lift its embargo on arms sales to China.

  5. China's enactment of its "anti-separation law" attempts to unilaterally change the status quo in the Taiwan Strait and raises tensions in the region. Furthermore, it severely and adversely impacts cross-strait relations, which had been showing signs of improvement. Taiwan will not alter its established position of "reconciling but not flinching, and standing firm while avoiding confrontation" 和解不退縮,堅定不對立. In fact, what people on the other side of the Strait need most are Taiwan's three most precious accomplishments: a democratic political system, freedom, and the protection of human rights.

  6. The March 26, 2005, parade for "Democracy and Peace to Protect Taiwan" 民主和平護台灣 represents the most peaceful, rational, and humble expression of the Taiwanese people's resolve to reject this antagonistic law.

On March 26, 2005, hundreds of thousands of people from across Taiwan took to the streets of Taipei to protest against China's enactment of the law. The march attested to the collective will of the people of Taiwan to safeguard their homeland.


Unification vs. Independence

Developments in 2006

During the period of 1991 to 2005, over half of Taiwan's outward investment was destined for China. On the one hand, Taiwan's government strives to normalize economic relations across the Strait. On the other hand, it believes measures to avoid becoming economically overdependent on China should not be neglected.

With this in mind, President Chen indicated in his 2006 New Year's Day Message that the government would take on the responsibility of management in order to reduce the risks of liberalization. The "proactive management and effective liberalization" 積極管理,有效開放 principle shall apply to future cross-strait policies, he stated.

Consistently, over 80 percent of Taiwan's citizens have stated that they wish to see the status quo maintained and the nation's future decided by their own free choice and decision. Respecting this, Taiwan's government must take necessary actions to safeguard the nation's freedom and democracy as well as the status quo of peace and stability in the Taiwan Strait. On February 27, 2006, after a systematic assessment by the government, President Chen announced that the National Unification Council would cease to function and the Guidelines for National Unification would cease to apply.

The international community is united in its wish to see a peaceful solution to cross-strait disputes. Direct contact and dialogue between the governments of the two sides are inevitable. To fulfill its responsibility to Taiwan's people, the government has repeatedly urged China to engage in dialogue and seek a mutual understanding regarding the two sides' future. Hopefully, Beijing will make the necessary adjustments and accept the mainstream values of the community of democracies, respect the wishes of Taiwan's citizens, renounce the use of force against Taiwan, remove obstacles to positive cross-strait interactions, and help to create an era of peace, stability, and prosperity in the Taiwan Strait.

Public Opinion Polls

To better understand how people feel about the government's cross-strait policies, the MAC has been polling residents on key issues through various polling organizations for more than a decade. Subjects regularly polled include "unification or independence," China's "one country, two systems" formula, and "direct transportation links." Polls are also conducted when important announcements are made or major events arise involving cross-strait relations.

Since the MAC initiated the "unification or independence" survey in the 1990s, the results have consistently shown that the people of Taiwan support the continuance of the status quo. "Status quo now/decision later" ranks highest every year while "status quo indefinitely," "status quo now/independence later," and "status quo now/unification later" compete for second place.

China's "one country, two systems" formula never polls well in Taiwan. Although China eagerly promotes the formula in various ways, the majority of Taiwan's residents still have doubts about it and continue to oppose its application to Taiwan.

As to the surveys on the government's pace in promoting cross-strait exchanges, the results of a survey on November 5, 2005, showed that 33.6 percent of respondents considered the pace "just right," 30.6 percent believed the pace to be "too slow," 22.4 percent "too fast," and 13.4 percent didn't know.


The Pace of Cross-strait Exchanges

Cross-strait Exchanges

Private exchanges between the two sides have increased since the government lifted the ban on private visits to China in 1987. The number of visits made by Taiwan's citizens to China during a given year skyrocketed from 440,000 in 1988 to 4.1 million in 2005. During these 18 years, Taiwan's citizens have taken a total of 40.8 million trips to China, while Chinese citizens have taken only 1.3 million trips to Taiwan. To further promote cross-strait interaction, the government began to allow journalists from China to cover news in Taiwan, and Chinese tourists (PRC citizens residing in or first traveling to a third country) to visit Taiwan beginning November 1, 2000, and January 1, 2002, respectively. Books written in simplified Chinese characters to be used solely for academic purposes at colleges or universities could be imported from China and sold starting in July 2003.

In order to strengthen exchanges with Hong Kong and Macau after they reverted to Chinese control in 1997 and 1999, respectively, the ROC government has continued to allow goods and its people to travel directly to these areas.

Cross-strait economic and trade relations have also expanded dramatically over the past decade. According to the official estimates, cross-strait trade amounted to US$76.37 billion in 2005, up 16.2 percent from the previous year. The largest portion of Taiwan's trade surplus comes from trade with China, as Taiwan exported US$56.28 billion worth of goods and services to China, while importing only US$20.09 billion worth. (For details on cross-strait economic ties, see Chapter 9: Economy.)

According to the Investment Commission under the Ministry of Economic Affairs 經濟部投資審議委員會, for the period between 1991 and December 2005, 34,452 cases of large-scale investment in China involving US$47.32 billion were approved.

Most recently, during the Conference on Sustaining Taiwan's Economic Development 臺灣經濟永續發展會議 held by the Executive Yuan in July 2006, conferees from all sectors of society on the Global Deployment and Cross-strait Economic and Trade Relations Panel called for the strengthening of risk-management mechanisms, urged the governments of Taiwan and China to set up a financial supervisory system, and recommended the gradual implementation of direct transportation links following government-to-government negotiations based on parity. It was also suggested that China-bound investments involving technology transfers be approved if such transfers did not jeopardize Taiwan's technological advantage.

The "Mini-Three-Links"

For many years, businesses from Taiwan that had established, or hoped to establish, a foothold in China called for the opening of "three links" (transportation, postal, and
trade links). National security concerns, however, have made this difficult, as China has been relentless in trying to thwart Taiwan's efforts to increase its participation in international affairs. In addition, Beijing has continuously put pressure on Taiwan's businesses in China, through which it tries to influence Taiwan's government.

To better accommodate the business sector's needs, the Legislative Yuan passed a resolution in June 2000, requesting the government to assess the possibility of "mini-three-links" (MTL) being established between China and the islands of Kinmen and Matsu.

Following impact assessment studies conducted by relevant agencies of the Executive Yuan in conjunction with the MAC, which coordinated and integrated the findings, the MTL were implemented for Kinmen and Matsu on January 1, 2001. Recently, they have been expanded to include Penghu, another island located closer to Taiwan proper, on a limited basis. Authorities have also loosened restrictions on the scale of transportation links, number of passengers, and volume of goods. On top of this, the proposal for transshipment and side-trips has also received approval.

In the short term, Kinmen and Matsu will continue to be opened in a limited fashion to shipping, tourism, trade, and postal services with China's Fujian 福建 Province in two stages: stage one, during which priority is given to determining the areas and services to include in the program; and stage two, during which additions to the program are subject to bilateral consultation.

In the medium and long term, Kinmen and Matsu might be used as way stations for tourists and the exchange of goods. Sea traffic might also be adjusted, whereas air traffic will be authorized only under appropriate conditions. Lastly, economic cooperation may be further developed between Taiwan's Kinmen and Matsu islands and China's Fujian Province.

Decriminalization

Two of the main aims for implementing the MTL are boosting the economies of, and promoting tourism in, Kinmen and Matsu by decriminalizing activities formerly seen as smuggling and illegal entry. Activities that do not endanger national security, including the import of daily necessities, general trade with Fujian Province, and the transport of passengers and goods on ships operated by ROC citizens, have been legalized. For Taiwan's businesspeople with investments in China, Kinmen and Matsu can serve as an alternate transit point to Hong Kong and Macau for them and their shipments.

Shipping Links

At present, air traffic is not included in this liberalization of transportation links. Sea transportation is limited to one port per region, with "fixed points, fixed periods, and fixed courses" 定點、定期、定航. The sea routes run from Kinmen to China's Xiamen 廈門, and from Matsu to Fuzhou 福州. A new route between Kinmen and Quanzhou 泉州 was launched in June 2006. In principle, passenger and cargo ships, but not fishing boats, are allowed. However, fishing boats refitted for passenger or cargo service are authorized in accordance with the Act of Ships 航舶法 and the Act of Marine Transportation 航業法.

Entry and Exit of Personnel

The MTL have boosted trade, tourism, and financial exchanges. By June 2006, more than 11,300 trips by ship, involving a total of 774,057 person-trips, had been made between Kinmen or Matsu and China. Many elderly natives of Kinmen living in Xiamen 廈門 have been able to visit their birthplace. Improvements have also been seen with regard to the problem of smuggling.

Initially, residents of Kinmen and Matsu were allowed to enter China for only a limited scope of purposes, such as enhancing the development of these islands and for humanitarian affairs. In October 2003, the Legislative Yuan passed an amendment to the Act Governing Relations between Peoples of the Taiwan Area and the Mainland Area, expanding the scope of travelers covered by this act to include Taiwanese businesspeople who have legally registered their investments in China with the Ministry of Economic Affairs 經濟部, as well as their family members.

Citizens of China are also allowed to visit Kinmen and Matsu for business and tourism purposes. They, however, are subject to a quota system that allows a maximum of 700 mainland residents to enter Kinmen and 100 to enter Matsu per day due to security concerns.

The new regulations aim to further consolidate the Kinmen and Matsu areas' positions as transshipment hubs between Taiwan and China prior to the opening of the full-scale "three links."

After the outbreak of the severe acute respiratory syndrome (SARS) epidemic in March 2003, the MAC temporarily suspended the MTL to prevent SARS from spreading to Kinmen and Matsu. Since mid-July of that year, transport of goods and passengers services have been resumed.

Since May 2006, those who were born in Kinmen or Matsu and residents of Taiwan whose household registrations list them as having had residency in Kinmen or Matsu before 2001 have been allowed to travel to China. These individuals' spouses, parents, young children, siblings, and spouses of siblings are allowed to do likewise.

Trade

In the trade of goods, priority has been given to the basic needs of residents on Kinmen and Matsu under the premise of total volume control. The transshipment of semi-processed goods is next in priority. As a first step in the process of decriminalizing imports, a list of approved goods has been created. For the next step, the list of items will be expanded according to the needs of Taiwan's offshore islands. With the exception of contraband, ultimately no restrictions will be imposed on exports.

Although quarantine and customs clearance measures have been relaxed on Kinmen and Matsu, agricultural and fishery products are forbidden to enter Taiwan proper.

Charter Flights

In light of the great demand for flights during holidays, the MAC approved indirect charter flights to and from China for the Lunar New Year from January 26 to February 10, 2003, a service some 2,500 Taiwanese businesspeople and their family members took advantage of.

At a high-level national security meeting on November 10, 2004, President Chen called on the two sides to start consultations regarding similar charter flights for the 2005 holiday. Representatives from Taiwan held talks with their Chinese counterparts in Macau on January 15, 2005. It was agreed that direct charter flights for the upcoming Lunar New Year holiday would be launched, although both sides' planes would have to pass through the airspace of Hong Kong or Macau; Chinese airlines would be allowed to participate; and passengers could begin their round trip in Taiwan or China.

In 2006, the two sides of the Taiwan Strait followed the 2005 model when arranging the Lunar New Year charter flights. Flights were increased from 48 to 72, and Xiamen was included as a Chinese destination for the first time. In addition to Taiwanese businesspeople and their family members, residents of Taiwan who had valid entry and exit documents from both Taiwan and China were also allowed to take the flights.

On June 14, 2006, the two sides of the Taiwan Strait concurrently announced that more charter flights would be launched as soon as detailed agreements could be made. Companies in China operated by citizens of Taiwan will be able to apply, on a case-by-case basis, for direct cargo charter flights to ship their equipment, machinery, and components from Taiwan. Passenger charter flights will be offered during four major holidays, namely the Lunar New Year, Tomb-Sweeping Day, Dragon Boat Festival, and Mid-Autumn Festival. Charter flights for medical and humanitarian purposes will be allowed in case of emergencies.


Related Websites
ico-narrow1Mainland Affairs Council: http://www.mac.gov.tw
ico-narrow1Straits Exchange Foundation: http://www.sef.org.tw

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