Although the international financial crisis has yet to hit its bottom, a warm undercurrent was felt at the 2009 Cross-Straits Economic and Trade Forum, which opened yesterday. Both mainland China and Taiwan pledged to increase financial cooperation to support small and medium-sized enterprises on both sides.

 

Li Shuilin, President of the Association of Economy and Trade across the Taiwan Straits, sounded upbeat throughout his speech. He called for increasing economic and trade exchanges across the Taiwan Straits to cope with the impact of the financial strom.

 

Cheng Fu-Hung, Deputy Director General of Taiwan Electric and Electronic Manufacturers Association, stated industry and capital have the same relationship as human body and blood, while Douglas Hung, Chief Executive Officer of the Taiwan Common Market Foundation, said the relationship was the same as fish-water relations. He added that the financial crisis has seriously impacted upon export industries and that more substantive action is required to speed up financial cooperation across the Taiwan Straits.

 

The ongoing financial crisis has exerted an adverse influence on both the capital market and the physical economy across the Taiwan Strait. Hong Ruibin, an advisor to the Taiwan Common Market Foundation, revealed that Taiwan’s steps to support banks, enterprises and labor are producing results, while the mainland’s RMB 4 trillion economic stimulus package has benefits Taiwanese businesses.

 

The development of SMEs is a topic of intense interest around the world. According to Lai Shangui, an advisor to the Taiwan Common Market Foundation, said the growth of SMEs correlates with economic development. Many major companies and conglomerates have grown from SMEs, and SMEs provide a large of job opportunities. As much as 78 percent of job opportunities in Taiwan come from SMEs. Mr. Lai said that in Taiwan, SMEs’ financing needs are met by bank credit, equity sales, and government subsidies.

 

Mao Yushi, a leading economist in the mainland, stated that it’s important for both sides to learn from each other in the midst of the financial storm. He emphasized that “the mainland should learn from Taiwan’s education and agriculture, while Taiwan needs to draw up the mainland’s profound cultural heritage and its 30 years of experience in reforming and opening up.