Taiwan benefits from closer economic ties

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A promise by the central government of help for Taiwan to cope with the global economic downturn is being turned into action. Experts say eight detailed policies announced on Sunday should bring swift and sweeping benefits to the island's economy.

The fastest way to assist Taiwan is to buy the island's products. Exports to its key market, the United States, are falling. The new policy says the mainland will buy farm produce twice a year from Taiwan and other industrial products and the necessities of life will also be included in the shopping list.

The mainland has also announced it's encouraging Taiwan firms to become involved in infrastructure construction on the mainland. That means Taiwan firms can share in the mainland's four trillion yuan stimulus plan. Taiwan's construction, steel, petrochemical, and mechanical engineering industries are expected to benefit. Stocks in these sectors surged on Monday.

Tourism can also bring economic benefits to the island. Some 600 thousand mainland tourists will visit Taiwan this year. Economists estimate that number of visitors will bring Taiwan about 1.5 billion US dollars in revenue, support 30 thousand direct jobs and 70 thousand indirect.

Another important break through is allowing law firms from Taiwan to open branches in Fuzhou and Xiamen, so they can help Taiwan firms deal with legal issues.