TAIPEI: A senior mainland official made a pitch here yesterday for closer cross-Straits industrial cooperation, saying it is beneficial to both sides.

Lou Qinjian, vice minister of the Ministry of Industry and Information Technology in Beijing, said the mainland is a big market that many countries are eager to explore, and that any government measure designed to limit hi-tech ventures into the mainland will jeopardize chances for the businesses concerned to thrive there.

"The government should leave it to the individual businesses to determine whether to tap into the mainland market," Lou said, as Taipei is mulling whether to relax restrictions on its hi-tech industry investment in the mainland market.

On the part of the mainland, Lou said, its responsibility is to create a business environment favorable to investors.

Speaking on the first day of the two-day Cross-Straits Forum on Industrial Standards in the Information Industry, Lou said the mainland will seek Taiwan's cooperation on TD-SCDMA (time division synchronous code division multiple access - the mainland's home-grown third-generation mobile phone network standard), flat panel displays, IPTV (Internet protocol television), and green power.

Citing TD-SCDMA as an example, Lou said that the market needs this technology very much, but added that there are few applications for the technology, while expressing his hopes that cooperation between Taiwan and the mainland could accelerate the integration of the production chain and meet this need.

As the mastermind behind Beijing's policy to promote the sales of electrical appliances in rural areas on the mainland, Lou said the success of this policy hinges on mainland TV manufacturers' market information and Taiwan TV manufacturers' technology.

This policy will expand in the future to encourage mainland families in the urban areas to replace their old TV sets with new ones.

As Taiwan and the mainland have already launched direct trade as well as air and shipping links, and are on the threshold of inking an economic cooperation framework agreement, Lou said the conditions for bilateral industrial cooperation are in place.

Lou arrived here Monday as the head of a 100-strong mainland delegation composed of industrial leaders and scholars for the forum.

He and his delegation will visit the cities of Hsinchu, Taichung and Tainan later this week and meet with executives of leading IC manufacturers during the tour.

Steve Ruey-long Chen, chairman of the forum's Taiwan co-organizer, SINOCON Industrial Standards Foundation, said Taiwan will help the mainland with its policy of expanding broadband network to rural areas, which is expected to follow its current policy of promoting purchases of electronic appliances.

He said the fact that the global financial crisis had taken a heavy toll on Taiwan's chip foundries and flat panel manufacturers has driven home the need for Taiwan to sharpen its competitiveness through closer cooperation with the mainland in the fields of procurement, research and development, and brand name promotion.

Terry Gou, founder of Foxconn Electronics, urged governments on both sides of the Taiwan Straits to work together more aggressively with the private sector to set up technology standards catering to consumers of the Greater China area.

China Daily/CNA

(HK Edition 11/25/2009 page2)