Really Going WTO?  (c) Simon Xi Zhang, 2002

III-B.  REVISION MEASURES UNDERTAKEN IN DIFFERENT SECTORS

 

2.  Financial Transactions with Banks Located in Mainland China

Financial Exchange is another issue addressed by WTO Plan. The part discussing Trade of Services, as above, has mentioned that except for reinsurance and retrocession services, Chinese cannot provide financial service in Taiwan during the initial period of WTO enforcement. The Plan only addresses the issue how Taiwanese financial institutions should deal with Chinese banks. This is an overseas investment issue for Taiwan.

Ministry of Finance has already revised two rules[65]. Designated Banks in Taiwan and OBU may conduct direct remittance transactions and direct foreign exchange transactions with Chinese banks located in mainland. For other Taiwanese financial institutions, indirect transaction is permitted without the need of special application. Such measures facilitate Taiwanese businesses in their trading activities with mainland and running their investments in mainland. 



[65] Rules for Banks in Taiwan Area Conducting Mainland Import and Export Foreign Exchange Transaction, modified by Ministry of Finance Order, Tai-tsai Rung-(I)-tse No.0911000065 (February 13, 2002). Rules for Banks in Taiwan Area Conducting Remittance Transaction with Banks in Mainland Area, modified by Ministry of Finance Order, Tai-tsai Rung-(I)-tse No.0911000058 (February 13, 2002). Both Rules took off "indirect" from their original titles.