PRC VICE MINISTER LEADS INFOTECH DELEGATION TO

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 TAIPEI 00001618 002 OF 002 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