The new Taiwan policies announced yesterday at the Strait Forum shows that the mainland is taking concrete measures to help Taiwan to cope better with the ongoing financial crisis.

The eight measures follow close on the heels of the recent ground-breaking agreements on cross-Straits investment and travel. They range from forging ahead with the mainland's investment in Taiwan, buying Taiwanese-made products, opening the mainland market wider to Taiwan to promoting tourism and agricultural cooperation.

The procedures for mainland companies to invest in Taiwan are designed to guide the negotiations and signing of contracts. This will facilitate mainland capital flow to Taiwan, which is scheduled to begin next month at the earliest. Such flow of capital will help normalize cross-Straits economic ties and strengthen the competitiveness of enterprises on both sides.

During the present financial crisis, nothing is more precious for an economy than finding a bigger market for its products. The mainland's purchase of LCDs as part of its campaign to boost demand for household electrical appliances in the countryside has already helped many Taiwan electrical companies. This time, there will be many more beneficiaries, as several mainland groups will head for Taiwan to buy agricultural produce, industrial products and consumer goods.

Eligible and competent Taiwan companies will also benefit more from the mainland's US$586 billion stimulus package as they are allowed to participate in infrastructure construction in the mainland.

The number of people from the mainland to visit Taiwan has been steadily increasing since last May, providing a golden opportunity to boost the island's sagging tourism. The mainland's plan to increase the number of visits to 600,000 this year will surely contribute more to the local economy.

The mainland and Taiwan should cooperate closely to make sure these measures are effectively implemented. Cross-Straits relations have had their ups and downs in the past decade due to political uncertainties. The achievements of recent years should be consolidated and further developed in order to keep up the momentum of cooperation.

There are still some areas of misunderstanding between people. For example, it is reported that Taiwan media was warned against accepting advertisements from the Strait Forum organizers. One "Mainland Affairs Council" official says the advertisements are "propaganda stuff".

It may be oversensitive to see an advertisement as political rather than commercial. However, it is natural for some Taiwan people to think this way, because the two sides have been far apart from each other for six decades. It will take time for the two sides to find themselves on the same page. Such problems stress the need for better communication across the Straits about how they see issues. More platforms such as the Strait Forum, the biggest unofficial forum across the Straits, should be created to improve understanding between the people.

This is important because, as Wang Yi, director of the State Council's Taiwan Affairs Office, said: The general public will be the core force to propel the progress of cross-Straits relations. It will not be difficult to achieve considering the close bonds between the two sides of culture, language, social customs and religion.

(China Daily?May 18, 2009)