C O N F I D E N T I A L SECTION 01 OF 02 TAIPEI 001618

SIPDIS

SIPDIS

STATE FOR EAP/TC
DEPARTMENT PLEASE PASS TO NSC WASHINGTON DC PRIORITY

E.O. 12958: DECL: 05/04/2026
TAGS: ECON PINR ETRD CM TW
SUBJECT: PRC VICE MINISTER LEADS INFOTECH DELEGATION TO
TAIWAN

Classified By: AIT ACTING DEPUTY DIRECTOR CHARLES BENNETT,
REASONS 1.4 B, C.


1. (SBU) SUMMARY: PRC Ministry of Information Industry Vice
Minister Jiang Yaoping arrived in Taipei on May 9 with a
delegation of 45 government officials and business executives
for the second Taiwan-PRC information industry standards
forum through which Taiwan firms are seeking a competitive
edge by helping to develop unique standards for information
technology products, which the PRC hopes will eventually
become global standards. Jiang is the highest PRC official
to ever visit Taiwan and some analysts view his visit as a
reflection of improved cross-Strait economic relations. END
SUMMARY


2. (C) An AIT contact from the office of forum organizer KMT
Vice Chair Chiang Ping-kun told AIT that the purpose of the
forum is to coordinate Taiwan and PRC firms in their efforts
to reduce patent and license fees through cooperation in
development of new information technology standards. Our
contact said that Taiwan firms also want to gain a
competitive edge in China's market over their competitors
from other nations. The PRC's development and adoption of
home grown standards will make market entry difficult for
foreign companies that do not use the standards, he said.
He added that Taiwan firms are assisting the PRC in
developing and establishing high-tech standards that differ
from international standards in an attempt to help the PRC
gain "first mover" advantage in setting global standards.


3. (C) PRC Vice Minister Jiang Yaoping's visit to Taiwan is
an important indicator of improved cross-Strait economic
relations. The PRC delegation will attend a two-day
cross-Strait information industry standards forum, beginning
May 10. The agenda will include standards for memory cards,
liquid crystal display (LCD) panels, third generation time
division-synchronous code division multiple access (3G
TD-SCDMA) cell phones, audio video coding standards (AVS),
semiconductors and green energies (poly-silicon ingot
technology), and more.


4. (C) The PRC delegation includes several government
department directors and department deputy directors. Their
arrival in Taipei signals a PRC emphasis on closer
cross-Strait business cooperation. On the Taiwan side, our
contact said, the ruling DPP Party has not tried to block the
PRC delegation's travel. Our contact said that the Mainland
Affairs Council (MAC) has provided valuable assistance even
though the nominal sponsoring agency (the Sinocon Foundation)
is a private organization. Without MAC help it would have
been impossible for such a large PRC delegation composed of
many high-ranking officials to attend a meeting in Taipei.
According to the contact, Taiwan officials from the Ministry
of Economic Affairs and other agencies will attend the forum
as observers.


5. (C) Taiwan and the PRC began cooperating on information
technology standards in 2005. To facilitate cross-Strait
cooperation in this respect, leading information and
electronic firms in Taiwan organized the Sinocon Foundation
early last year. KMT Vice Chairman Chiang Ping-kun was
elected as Chairman and its directors include such business
leaders as Chinese National Federation of Industries Chairman
Hsu Sheng-hsiung, Quanta Computer Chairman Barry Lam, and Hon
Hai Precision Industry Chairman Terry Gou.


6. (C) The first Taiwan-PRC information industry standards
forum took place in Beijing in July 2005. Taiwan's
delegation to Beijing, headed by KMT Vice Chairman Chiang,
included 52 members who were mostly business leaders in
information and electronic industries. Lin Kuei-jen,
Director of the Optoelectronic Engineering Institute under
Taiwan's semi-official Industrial Technology Research
Institute, also attended the forum. Following the first

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forum, the PRC sponsored meetings in Beijing October 31 and
November 1, 2005. Participants included officials from the
Taiwan Digital TV Image Display Working Committee and TFT-LCD
Display Promotion Office.
YOUNG