Friday, March 6, 2009

China has invited Taiwan to cooperate during the crisis.

China needs to improve political and economic relations with Taiwan. It writes the newspaper The New York Times, about the Prime Minister of China Wen Jiabao. In particular, there is a greater integration of financial systems in both countries, as well as entering into a preliminary agreement on economic cooperation, which subsequently helps to reach agreements on free trade. Jiabao noted that China does not exclude the participation of Taiwan in international organizations.
This is the first serious moves China toward reconciliation with Taiwan, which in 1949 declared its independence from the mainland state. China does not recognize the independence of Taiwan. The relationship between the countries began to improve in 2008, when the island from the mainland government was resumed air links. Nevertheless, in the opinion Jiabao, closer cooperation between the two states would strengthen both the economy in a global crisis.
Previously, China has introduced a plan to support the economy, the financing of which would require 4 trillion yuan (585 billion dollars). As part of a document 1.18 trillion yuan will be spent on overcoming the effects of global crisis and increased domestic consumption. An additional 400 billion yuan (58.56 billion dollars), the country spends on construction of infrastructure facilities that will enable it to create additional jobs.
On the construction of new airports, roads and railways is scheduled to spend 1.5 trillion yuan, to education, health care and routine child-bearing - 150 billion yuan. Yet nearly a trillion yuan will be spent on rehabilitation of earthquake-affected provinces Sechuan.
In addition, writes The Guardian, the Chinese Government has planned to increase investment in agriculture by 20 per cent or 121 billion yuan.

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