Beijing outlines ‘interconnected living’ plan for Taiwan and Fujian
Policymakers released detailed measures to turn the southeastern mainland province into a demonstration area for integrated development across the Taiwan Strait in a 21-article document on Tuesday.
The move is intended to “deepen cross-strait integrated development in all fields and promote the process of peaceful reunification”, according to the plan, jointly issued on Tuesday by the Communist Party’s Central Committee and the State Council, China’s cabinet.
The authorities will make the coastal province the first-choice gateway to the mainland for Taiwan residents and companies, further smoothing mutual people-to-people exchanges, trade and investment, the plan said.
The intention is to create interconnected living circles between the mainland port city of Xiamen and Quemoy – also called Kinmen – which is less than 5km (three miles) away on Taiwan, as well as between Fujian province’s capital Fuzhou and Matsu, which are separated by about 20km (12.4 miles).
Fujian, on the west coast of the strait, is geographically and culturally the closest part of the mainland to Taiwan, which Beijing has vowed to bring under its control, by force if necessary.
One day before releasing the new outline, the party’s No. 4 official Wang Huning called for an effort to fight separatists and external intervention in Taiwan as he began his new role as head of an organisation tasked with promoting peaceful unification.
Speaking at the China Council for the Promotion of Peaceful National Reunification’s plenary meeting on Monday, Wang also urged more efforts to promote cross-strait exchanges and interactions to “strengthen the foundation of public opinion”.
Under the new plan, visitors from Taiwan will no longer need to register for temporary residence in Fujian and will be encouraged to settle down in the province, buy houses and take part in the mainland’s social welfare system.
A revised regulation, effective from 2015, stipulated that all Taiwanese visitors must register for temporary residence, whether staying in a hotel or at the home of a relative, or risk a warning or fine of between 100-500 yuan US$13-68).
The guideline also supports the enrolment of more Taiwanese students at Fujian’s universities and research institutes, as well as job opportunities and an improved business environment for workers and companies from the island.
There will be support for various types of enterprises, especially Taiwanese firms, to employ more staff from the island and special measures to ease market access, the document said.
Fujian province will also pilot a project to allow Taiwanese operators to invest in setting up radio and television programme production and operation companies.
According to Kent Chong, a partner with professional services firm PwC in Taipei, most Taiwanese start-ups are more US-connected and would not want to relocate to the mainland, given perceptions that Beijing is being isolated by the rest of the world.
“Those who would be attracted to Fujian province would be those in China already…and already enjoying dependence on China,” he said.
“This is because the Taiwan government is also scrutinising Taiwanese investment in China, especially new technology and critical industries.”
Cross-strait relations have been strained since Taiwanese President Tsai Ing-wen of the independence-leaning Democratic Progressive Party (DPP) was elected in 2016.
With Taipei’s next presidential election scheduled for January 13, Beijing has been at odds with leading contender William Lai Ching-te, deeming the DPP candidate a “troublemaker” after his transits through the US last month.
The new roadmap for cross-strait integration appears to build on a series of previous initiatives introduced over the past decade.
As early as 2009, Beijing issued a directive which included the goal of enhancing “economic integration” between Fujian and Taiwan by 2020.
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In 2019, President Xi Jinping called on the province to explore a new path for integrated development with the island.
At a forum in Xiamen in June, Wang flagged that central authorities had formulated the integrated development plan. In response, Taipei called on Beijing to refrain from costly but unproductive activities, stop “military intimidation” and fully open the door for mainland students and tourists to come to Taiwan.
“If the mainland side is genuinely interested in promoting cross-strait exchanges and cooperation and winning the favour of the Taiwanese people, it should think more about good initiatives that can really help cross-strait people [interactions] and exchanges,” said the Mainland Affairs Council of Taiwan.
Darson Chiu, a research fellow with the Taiwan Institute of Economic Research in Taipei, said Beijing might be hoping to leverage Fujian’s geographical proximity to Taiwan, as well as their similarities in language and culture.
However, Chiu noted that there are suspicions in Taiwan about Beijing’s new “counter-espionage law” which he said had dampened confidence among those who originally hoped to do business in the mainland.
People are also worried about whether the mainland is heading for deflation after its “far worse than expected” post-Covid recovery, he said.
“The incentive for Taiwanese people to go to Fujian for economic activities should be very weak at this stage.”