Cross-Straits currency settlement being coined

In November 2011, the State Council, China's cabinet, approved a plan to establish a comprehensive experimental area in Pingtan. Under the directive, the central government would channel funds into the county to attract Taiwan investment and create a "paradise" for both Taiwan and local people to live in.

To date, more than 130 Taiwan-funded companies have already started operations in Pingtan. Statistics show the total trade volume between Pingtan and Taiwan reached more than 2 billion yuan ($326.26 million) by 2013.

Last November, the first Pingtan-Taiwan Commodities Trade Fair was held in the county, which resulted in a turnover of about 14.5 million yuan and the signing of contracts worth 1.03 billion yuan.

"When the cross-Straits currency settlement is conducted in Pingtan, the county will add a new link between Taiwan and the mainland, namely, the capital link, to the current three links (trade, transport and postal connections), making a breakthrough for cross-Straits exchanges," said Dai Shugeng, a professor of economics at Xiamen University.

The benefits of such cross-Straits currency settlements for cross-border trade are apparent, Dai said.

"It would make cross-Straits trade and investment more convenient because most of the time the trading parties have to exchange new Taiwan dollars into US dollars and then into renminbi," he said, adding it also effectively reduces the risks posed by exchange rate fluctuations.

The authorities in Pingtan have been simplifying business registration procedures and will offer Taiwan compatriots who come to invest and work in the county a series of preferential policies, including a tax-related policy and free schooling for their children, Zhou Lianqing said.

"The province aims to build Pingtan into a frontrunner in cross-Straits cooperation and a common home for people of both sides," Zhou said.