In an effort to promote trade between Taiwan and the mainland and counter the effects of the global financial crisis, Kunshan City in Jiangsu Province has established a special cross-straits economic zone.

The zone, which is located at the Huaqiao International Service Business Park, is designed to help Taiwanese-owned companies investing in the mainland in four areas: trade exposition, logistics, finance, and telecom services.

A staff member with the Managing Committee of Huaqiao Economic Development Zone said, “Because of the export decline caused by the financial crisis, we wanted to create a platform for Taiwanese enterprises to help them sell their commodities.”

According to the Kunshan government, more than 3,400 Taiwanese enterprises worth approximately $32.6 billion have settled in Kunshan, and the total value of all cross-strait trade between Kunshan and Taiwan is at least $30 billion annually.

The zone has strong support on both sides of the Taiwan Straits. Mainland officials at all levels have provided powerful backing for the construction of cross-straits trade zone, and Taiwanese officials have visited several times.

This first phase of construction of cross-straits trade zone is currently under construction and will be ready for operation in October. An unspecified second phase will begin in 2012.

By Xie Fang