Market promotes cross-Straits trade links By Zhang Jin (China Daily) Updated: 2004-08-24 08:46
Lin Lizhen has good reason to celebrate a decision she made two years ago.
The 34-year-old Taiwanese woman, who wants to extend her family business to
the Chinese mainland but is fearful of difficulty of accession, chose to open a
small retail shop at the Taiwan Small Goods Trade Market on the Dadeng Island of
Xiamen, East China's Fujian Province.
"That was our first business in the Chinese mainland, and it is proving
successful," she said.
In her 20-square-metre shop, more than 100 kinds of Taiwan-made goods
including bottles of fiery sorghum liquor, Taiwanese processed foods and
cosmetics are for sale.
Lin's shop is one of the more than 300-plus that are gathered at the market,
the sole one opened in the Chinese mainland that enables direct trade between
people across the Taiwan Straits.
Just an hour's drive from Xiamen, through underdeveloped villages and
sprawling banyan trees, shops at the Dadeng Island Taiwan Trade Market now offer
an array of tax-free goods shipped from Jinmen: bottles of sorghum liquor,
Taiwanese packaged foods, hair care products and Jinmen-made kitchen knives,
among many others. Taiwanese businessmen stock up here on garlic, mushrooms,
toys and watches.
The market, opened in 1999, was designed to legalize the bustling but illicit
trade that has been going on for years between Matsu, Jinmen and Xiamen.
Taiwanese authorities allowed outlying islands including Matsu and Jinmen to
trade directly with the mainland in 2001.
Before that, goods from Taiwan had to be imported via a third place, such as
Hong Kong, Macao or South Korea, before entering the Chinese mainland.
Import tariffs are eliminated at the market if one buys goods worth less than
1,000 yuan (US$121) in a day.
Until now, a total of 30,000 Taiwanese people have visited the market,
bringing a total of US$20 million worth of goods.
"The fair essentially offers a tax-free venue for people across the Straits
to trade directly," said Hong Qi, an official with the market.
"Since it was opened, illegal smuggling and trading in Xiamen waters have
diminished," he said.
More significantly, the market has opened a window for Taiwan and mainland
business people to get to know each other more directly and in an everyday way.
"We have learned to do business in the mainland in the past two years by
running the shop," Lin told China Daily, saying she and her husband have become
acquainted with the mainland market and plan to invest in a health enhancement
centre on Dadeng Island.
"We are going to invest in more sectors and places in the mainland," Lin
said. "We found the market here is massive and lucrative."
Rosier future expected
Topping Hong's agenda is further activating the market by attracting more
shoppers and goods.
A set of incentives will be put in place to stimulate the market.
First, the completion of major transportation projects will bring more
mainlanders to visit the market.
A cross-sea bridge and an undersea tunnel will shorten the time needed to
bring a traveller from downtown Xiamen to Dadeng Island.
"Seventeen minutes will be enough," Hong said. "That compares with an hour
needed currently."
And more goods from Taiwan are expected to enter the market, Hong said.
At present, only six categories of goods are allowed to be sold there,
including food, apparel, artistic products, light industrial products and
medicines.
And buyers may flock to the island after the tax-free limit is lifted to
3,000 yuan (US$363).
"When the limit loosens up, shoppers will be able to buy DVD players and
small home electric appliances with zero tariffs," he said. "They will find the
inexpensive and high-quality goods at the market."
The 0.8-square-kilometre market will have an intake of imports of US$5
million from Taiwan this year, Hong predicted.
Hong said he expects the market to empower the development of the
underdeveloped Dadeng Island, whose dusty roads and shabby buildings offer a
stark contrast to high-pitched and modern downtown Xiamen.
"We hope the market can be a platform to lure Taiwan investors to the
island," said Hong.
"Dadeng has abundant tourism resources but lacks funds," he
said.
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