Get in the zone

China wants to bind Taiwan more tightly to the mainland.

On Monday, the Party Central Committee and State Council issued guidelines on establishing a cross-strait “integrated development demonstration zone" in the southeastern province of Fujian.

• This follows the State Council approval on September 6 of a plan by the macro planner (NDRC), Taiwan Affairs Office, and Guangdong government to "deepen cross-strait innovation and development cooperation" in Dongguan, Guangdong (Gov.cn).

Some context: The coastal provinces of Fujian and Guangdong enjoy robust economic ties with Taiwan due to their geographic proximity and cultural affinity with the island.

There's no secret as to what is going on here. The government hopes that closer economic ties will lead to peaceful reunification of Taiwan with the mainland.

The guidelines seek to promote closer Fujian-Taiwan economic and social integration by:

• Enhancing academic and career opportunities for Taiwanese
• Making it easier for Taiwanese to live in the province
• Facilitating cross-strait trade
• Improving public services and legal protections for Taiwanese individuals and businesses
• Facilitating supply chain collaboration
• Expanding Taiwanese firms’ access to mainland financial markets

Our take: There won’t be many takers.

• Rising production costs, a struggling economy, and growing political risks will keep most Taiwanese businesses from investing in the mainland.