l The campaign to attract Taiwanese capital and talent to the experimental development project in Pingtan Island, off China's southeastern province of Fujian, continued to be a hot and controversial issue in cross-Strait relations.
l A raft of 16 regulations was promulgated by Fujian Provincial Government in early June to encourage bilateral exchanges. Though these provisions may seem minor, the intent--as perceived by the government in Taipei--was to make business and living conditions on Pingtan Island as close as possible to those in Taiwan.
l The official response from Taipei, however, has been largely negative, claiming the Pingtan Island project was designed to be a showcase for the “one country, two systems” formula.
l We do not expect Taipei to change its long-held opposition to the Pingtan Island project simply because of the underlying "political overtones" surrounding the planned development.
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