Shares in Taiwan shipping firms fell on Monday as executives doubted Taipei would approve an offer from Beijing allowing them to invest in Chinese container companies and ports.
China's Vice Communications Minister Xu Zuyuan announced on Sunday it would let Taiwan firms invest in wholly-owned shipping and container transport firms and operate ports and highways. No timetable was given.
The move came after talks between the Chinese government and Taiwan's opposition Nationalist Party, or Kuomintang, at the Cross-Strait Trade and Economic Forum - part of Beijing's attempts to woo Taiwan's opposition parties, who favour closer ties with the mainland, and marginalise the pro-independence government of President Chen Shui-bian.
"Of course it's good news for the shipping industry in Taiwan, but it still depends on the Taiwan government whether they agree on the conclusions reached by mainland China and Kuomintang," said Nieh Kuo-wei, spokesman for the parent of Evergreen Marine, the world's No 3 container shipper. "If they agree, then of course we will put it into consideration, but it still hasn't come true yet. It's a big if," he said.
Taiwan tightly controls investment in China, fearing economic dependence on a political opponent. Involvement in mainland construction or operation of public projects there is forbidden, said an official at the Mainland Affairs Council in Taipei. The Council oversees relations with China.
Beijing claims Taiwan is part of its territory and has threatened force if the island declares formal independence. Taiwan's transport sub-index fell 2.4 percent, with both Evergreen and Yang Ming Marine Transport Corp off more than 3 percent by 0430 GMT, helping drag down the main index by 1.2 percent.
"While this offers a little more flexibility for investment, basically it still depends on the government," said Winsor Huang, public relations chief for Yang Ming, Taiwan's second-largest shipper.