China Woos Taiwan With Investment Package Ahead Of Presidential Inauguration As Xi Jinping Eyes Peaceful Reunification

In the lead-up to the inauguration of Taiwanese president-elect William Lai Ching-te, mainland China has extended an olive branch in the form of an investment package. The coastal city of Fuzhou has offered residents of Matsu, a Taiwanese-governed island group, improved access to its municipal services and business opportunities.

What Happened: The capital of Fujian province, Fuzhou, has unveiled plans for industrial cooperation parks, cross-strait trade distribution centers, and increased freight shipping, South China Morning Post reported on Friday. These initiatives were announced at the 26th Cross-Strait Economic and Trade Fair.

The measures are designed to foster industry collaboration, trade facilitation, professional qualification recognition, real estate investment, and education. Song Tao, director of Beijing's Taiwan Affairs Office, underscored the mainland’s economic recovery and its commitment to promoting exchange and cooperation with Taiwan.

These initiatives are part of Beijing’s strategy to win over Taiwanese hearts and minds, as it views Lai's independence-leaning Democratic Progressive Party (DPP) as a source of instability. This announcement builds on Beijing's guidelines announced in September for a Taiwan-Fujian "interconnected living" plan.

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Key measures include the establishment of an industrial cooperation park between Fuzhou and Matsu, preferential property investment opportunities for Matsu residents in Fuzhou, and a dedicated loan program offering preferential interest rates to Matsu investors. Education is also a focus, with measures aimed at enhancing educational exchanges and collaboration, including the possibility of joint educational programs and student exchange opportunities.

Why It Matters: This comes against the backdrop of increased military cooperation between the U.S. and Taiwan in response to escalating threats from China.

Taiwan's Vice President-elect, Hsiao Bi-khim, has also emphasized the importance of Taiwan's self-strengthening, despite the continued security assistance from the US. Additionally, there have been calls for the reinstatement of Taiwan's observer status in the World Health Assembly, with Rep. Nancy Pelosi (D-Calif.) expressing her strong support for Taiwan's meaningful participation in global health collaboration.

Chinese President Xi had earlier reiterated the "one country, two systems" proposal for Taiwan, emphasizing the need for the reunification of the motherland. Last year, he also expressed his desire for peaceful reunification with Taiwan to U.S. President Joe Biden.

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