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Small mart plays big role in cross-Straits exchanges
By Han Lei (chinadaily.com.cn)
Updated: 2004-08-06 09:55

A Taiwan-oriented small goods market has become an important bridge linking the two sides across the Taiwan Straits.


Dadeng-Taiwan Small Goods Free Trade Market is the only Taiwan-oriented small goods market on the Chinese mainland.

Dadeng Town is the closest place in the Chinese mainland to Jinmen Island, which is under the administration of Taiwan authorities. The shortest distance between Dadeng and Jinmen is only 1,800 meters.

To promote economic exchanges among people in Taiwan and the mainland, the market was opened in 1999 with the approval of China's State Council, said Hong Qi, an official with the market.

Goods carried by Taiwan ships can, under the supervision of the customs, enter the market free of import-related taxes before being sold to the retailers in the market.

The market covers an area of 80,000 square meters with 504 stalls for merchants from both the island and the mainland. Small business operators from both Taiwan and the mainland can do business in the market free from any operational taxes, Hong told reporters.

Visitors can also buy goods in the market without paying import taxes on condition that they makes less than 1000-yuan purchases a day.

Before the opening of the market, goods from Taiwan had to be imported via a third place, such as Hong Kong, Macao or South Korea, before entering the Chinese mainland. Ships from the Chinese mainland had to carry the goods back from international waters, said Hong Qi.

Through this market, the transport of small goods from Taiwan to Xiamen has become much easier, Hong said, adding that overseas cargo ships now can carry small goods directly to the seaport of Xiamen, thus greatly cutting down the costs of the goods.

Hong told reporters that prices of goods from Taiwan dropped considerately after the opening of the market.

"The market also created more trading opportunities and exchanges for people cross the Straits," said Hong.

"In the first half of this year, imports from Taiwan has surpassed the total of imports in the previous two years, hitting US$2.5 million. By the end of this year, the figure is expected to reach US$5 million, " Hong said.

However, the market will be expanded as it comprises only about 504 stalls, he said, expecting more merchants and visitors from both sides to come to Dadeng with the improvement of infrastructure construction in Xiamen, such as undersea tunnels and cross-sea bridges.

He predicted that the market is sure to become a hot trade spot, bringing closer the two sides across Taiwan Straits.



 
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