TAIPEI: Taiwan's semi-official trade promotion body hopes to help the island's enterprises develop more commercial opportunities by focusing on the mainland's continuing efforts to expand its domestic demand.

"We have been closely observing the future direction of Beijing's economic policies," said Wang Chih-kang, the chairman of the Taiwan External Trade Development Council (TAITRA).

Mainland leaders have repeatedly stressed the importance of boosting domestic demand, which a mainland economist sees as a solution to the country's potential economic problems, Wang said, referring to internal imbalances caused by its export-oriented economy.

Taiwan should capitalize on the opportunity to provide products that satisfy demand as the mainland's domestic market expands, and the TAITRA will help by organizing 12 shows introducing Taiwanese products in inland cities in central and western mainland, Wang said.

The main goal is to help Taiwanese companies set up distribution networks on the mainland and establish long-term relationships between suppliers and buyers, he stressed.

During the process, the TAITRA will also focus on eco-friendly industries, he said at a press conference where he outlined the body's past efforts and future goals.

Cities on the mainland will replace their street lamps with light-emitting diode (LED) lights, which represents an enormous opportunity for Taiwan, as Taiwan is one of the world's largest LED suppliers, Wang said.

In addition, the TAITRA will set up special sections featuring Taiwanese food products in mainland supermarkets to enhance their image among consumers there, increase market share and boost exports, he noted.

Wang will depart for Beijing January 20 to attend a contract signing ceremony that will bring Taiwanese flat panel firms contracts worth a combined $5 billion, surpassing the $4.4 billion recorded last year, according to the TAITRA.

Wang said that 10 business groups would visit Taiwan from the mainland this year, but he could not confirm details yesterday.

Though some mainland business groups have placed significant orders in Taiwan, Wang warned that Taiwanese companies should not rely just on these business groups or various exhibits to explore the mainland market.

"Companies should continue to innovate their products to create added value that will appeal to consumers," he said, describing innovation as a "long-term strategy to maintain Taiwan's competitive edge" on the mainland.

Wang also noted that the TAITRA will help Taiwanese companies take part in machinery, textile and industrial exhibits in ASEAN countries to seek more orders.

China Daily/CNA

(HK Edition 01/12/2010 page2)