Taiwan's Chen urges more trade beyond China

TAIPEI, July 27 (Reuters) Taiwan's economic ties with its largest trading partner, China, constitute only part of the island's overall international trade and should be considered in that context, Taiwan President Chen Shui-bian said on Thursday.

Taiwan's government fears economic reliance on China, which views the island as a renegade province to be unified by force if neccessary.

Speaking at the opening of a conference on sustainable economic development, Chen called trade with China only a ''segment'' of Taiwan's overall foreign trade.

''We must put it under the entire framework of international trade exchanges and again reaffirm Taiwan's national development,'' Chen said.

''We should plan cross-strait trade policy from a basis and in consideration of 'Taiwan first','' said Chen.

A failure to reach a consensus on China-related trade topics in a series of preparatory meetings means that the key issues of direct flights to China and expanding the scope of technology investments in the mainland aren't even on the agenda.

Despite tensions with China, Taiwan businesses in China have the most to gain from easing ties after investing as much as 0 billion in the mainland, which despite political differences is the island's favourite investment destination.

Taiwan exports to China and Hong Kong amounted to over US billion in June, more than double those to its second largest export destination, the United States with TAIPEI, July 27 (Reuters) Taiwan's economic ties with its largest trading partner, China, constitute only part of the island's overall international trade and should be considered in that context, Taiwan President Chen Shui-bian said on Thursday.

Taiwan's government fears economic reliance on China, which views the island as a renegade province to be unified by force if neccessary.

Speaking at the opening of a conference on sustainable economic development, Chen called trade with China only a ''segment'' of Taiwan's overall foreign trade.

''We must put it under the entire framework of international trade exchanges and again reaffirm Taiwan's national development,'' Chen said.

''We should plan cross-strait trade policy from a basis and in consideration of 'Taiwan first','' said Chen.

A failure to reach a consensus on China-related trade topics in a series of preparatory meetings means that the key issues of direct flights to China and expanding the scope of technology investments in the mainland aren't even on the agenda.

Despite tensions with China, Taiwan businesses in China have the most to gain from easing ties after investing as much as $100 billion in the mainland, which despite political differences is the island's favourite investment destination.

Taiwan exports to China and Hong Kong amounted to over US$7 billion in June, more than double those to its second largest export destination, the United States with $2.5 billion.

Around 150 academics, businessmen and officials have gathered at the summit to discuss medium and long-term goals for Taiwan's economy.

A similar conference was in August 2001, when the island reeled from a recession, but analysts said there was little follow-through and many suggestions concerning trade ties with China did not materialise.

REUTERS SBA ND2050 .5 billion.

Around 150 academics, businessmen and officials have gathered at the summit to discuss medium and long-term goals for Taiwan's economy.

A similar conference was in August 2001, when the island reeled from a recession, but analysts said there was little follow-through and many suggestions concerning trade ties with China did not materialise.

REUTERS SBA ND2050