After six decades of mutual mistrust and suspicion, China and Taiwan have edged closer in the past two years, at least economically.
Following the election of the nationalist Ma Ying-jeou as the Taiwanese president in 2008, Chinese tourists have been flocking to Taiwan to find out more about an island that in decades past they knew largely through communist propaganda.
More than 70 Taiwanese universities and other education institutions are this year recruiting their first students from the mainland.
There also are many direct shipping services and flights between Taiwan and mainland China, and only last week flights between the airports closest to the centres of Shanghai and Taipei took to the air for the first time.
In Beijing last month, a so-called Taiwan Street with more than 100 shops and restaurants selling Taiwanese products opened, while it was recently announced that the Chinese Writers' Association would welcome its first Taiwanese members.
On the economic front, the red tape snarling investments in sectors such as insurance and banking has been cut.
With rapprochement the order of the day, it is no surprise China and Taiwan are looking to lower trade barriers even more.
Mr Ma has recently called trade "Taiwan's lifeblood".
"We can handle diplomatic isolation, but economic isolation is fatal," said Mr Ma, who is chairman of Taiwan's Kuomintang Party, which fled to the island in 1949 when Mao Zedong's communists took control of the mainland.
The so-called economic co-operation framework agreement that Beijing and Taipei are now finalising will cut tariffs on many goods moving between them. A total of 500 products exported from Taiwan to China, worth US$13.6 billion (Dh49.95bn) in trade annually, will be affected, along with 200 items moving in the other direction. The agreement is likely to be signed by the end of next month.
"For the Taiwan government, the most important objective is to enhance Taiwan's economic networking and give Taiwan a new push to upgrade some of its industries," says Dr Ding Xueling, a professor at the Hong Kong University of Science and Technology who has more than a decade's experience of studying China's relations with its neighbours.
"Opening up to the mainland will give Taiwan important new dynamics. That's the number one priority for the Taiwan government."
While some see economic benefits, the proposed agreement is causing controversy.
Concerns have been raised in Taiwan that traditional industries such as footwear manufacturing will suffer if the island is swamped with cheap mainland goods. Shoes are not on the current list of items affected by the agreement, but Mr Ma said last week that as negotiations continued, more items could be added, as the list so far covered only 10 to 15 per cent of the trade between the mainland and the island.
Taiwan's opposition pro-independence Democratic Progressive Party, which fears an erosion of Taiwan's sovereignty and eventual compromising of its democratic institutions, plans to hold protests against the proposed agreement this month.
Opponents insist the deal would threaten jobs on the island. And there are worries over whether it would make Taiwan too reliant economically on its much larger neighbour. Ren Xianfang, the Beijing-based analyst at IHS Global Insight, says Taiwan is already heavily dependent on the mainland "despite the investment restrictions that have been in place".
China is the destination for 40 per cent of Taiwan's exports, mostly products sent for final assembly in mainland factories.
"Taiwanese investors have been the main source of overseas investment in coastal China and a huge source of growth for many of these coastal regions [of the mainland]," she says. Taiwanese investors have put more than $100bn into the mainland in the past two decades.
Ms Ren believes the agreement will encourage more Taiwanese investment on the mainland. "That's very positive for the growth of China," she says. The agreement also comes as investment in the other direction increases.
Another observer who thinks the benefits will outweigh the drawbacks is Zhigang Li, an assistant professor in the faculty of business and economics at the University of Hong Kong. Taiwan's economy, being heavily involved in the production of components later assembled into finished goods in China, is "complementary" to that of the mainland.
"In general I think the agreement should generate benefits to Taiwan," he says, while adding that as with previous similar pacts in the region, it could take years for the full impact to become clear.
Aside from the direct effect on trade, signing such an agreement with China is likely to help Taiwan extend economic ties beyond the mainland.
China's ongoing moves to isolate Taiwan diplomatically - Beijing does not recognise countries that have diplomatic relations with Taipei - mean the island has struggled to develop free-trade agreements with its neighbours or countries further afield.
Taiwan has only North Korea for company when it comes to countries in the region that have failed to strike trade agreements with China and members of the Association of South-East Asian Nations (ASEAN). The rival east Asian economies such as South Korea have finalised such deals and are reaping the economic benefits. Seoul concluded a third free-trade agreement with ASEAN a year ago covering investments, following similar pacts on goods and on services.
Taiwan hopes the trade accord with China will pave the way for agreements with the ASEAN block and ultimately with larger economies, even the US. While Taipei looks to extend economic ties, Dr Ding believes Beijing has one eye on political unification.
"Beijing has an even longer perspective, that is to make the Taiwan people, especially the so-called pro-independence population, reduce their hostility to [the] PRC [People's Republic of China] and to create feelings of being a family," he says, adding this would "help the political integration".
Significant tensions remain between China and Taiwan. The mainland regards the island as its territory and has promised to invade if the Taiwanese leadership formally declares independence. This year Taiwan struck a $6.4bn defence agreement with the US, equipping itself with an array of mine-hunting ships, Patriot missiles and Black Hawk helicopters, much to Beijing's anger.
Ms Ren says such "political uncertainty" between Beijing and Taipei and the competing nationalist and independence factions in Taiwan remain a "pitfall" to stronger economic links. In looking to deepen economic ties with the mainland, Taiwan is engaged in a delicate balancing act, Dr Ding believes.
"Taiwan will make every effort to do two things that look contradictory," he says. "On the one hand to benefit as much as possible from being part of the great Chinese market system, not just the mainland but also Hong Kong, South-East Asia and the overseas Chinese business network.
"At the same time [it wants] to maintain the eventual economic independence of the Taiwanese economic system. They want these two things together. That will become more and more difficult."
business@thenational.ae
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The biog
Name: Dhabia Khalifa AlQubaisi
Age: 23
How she spends spare time: Playing with cats at the clinic and feeding them
Inspiration: My father. He’s a hard working man who has been through a lot to provide us with everything we need
Favourite book: Attitude, emotions and the psychology of cats by Dr Nicholes Dodman
Favourit film: 101 Dalmatians - it remind me of my childhood and began my love of dogs
Word of advice: By being patient, good things will come and by staying positive you’ll have the will to continue to love what you're doing
Disposing of non-recycleable masks
Use your ‘black bag’ bin at home
Do not put them in a recycling bin
Take them home with you if there is no litter bin
- No need to bag the mask
More from Neighbourhood Watch:
THE SPECS
BMW X7 xDrive 50i
Engine: 4.4-litre V8
Transmission: Eight-speed Steptronic transmission
Power: 462hp
Torque: 650Nm
Price: Dh600,000
Engine: 5.6-litre V8
Transmission: seven-speed automatic
Power: 400hp
Torque: 560Nm
Price: Dh234,000 - Dh329,000
On sale: now
Naga
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Terror attacks in Paris, November 13, 2015
- At 9.16pm, three suicide attackers killed one person outside the Atade de France during a foootball match between France and Germany
- At 9.25pm, three attackers opened fire on restaurants and cafes over 20 minutes, killing 39 people
- Shortly after 9.40pm, three other attackers launched a three-hour raid on the Bataclan, in which 1,500 people had gathered to watch a rock concert. In total, 90 people were killed
- Salah Abdeslam, the only survivor of the terrorists, did not directly participate in the attacks, thought to be due to a technical glitch in his suicide vest
- He fled to Belgium and was involved in attacks on Brussels in March 2016. He is serving a life sentence in France
The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
Results
5pm: Reem Island – Conditions (PA) Dh80,000 (Turf) 1,600m; Winner: Farasah, Antonio Fresu (jockey), Musabah Al Muhairi
5.30pm: Sir Baniyas Island – Maiden (PA) Dh80,000 (T) 1,400m; Winner: SSR Ghazwan, Antonio Fresu, Ibrahim Al Hadhrami
6pm: Wathba Stallions Cup – Handicap (PA) Dh70,000 (T) 1,400m; Winner: Astral Del Sol, Sean Kirrane, Ibrahim Al Hadhrami
6.30pm: Al Maryah Island – Maiden (PA) Dh80,000 (T) 2,200m; Winner: Toumadher, Dane O’Neill, Jaber Bittar
7pm: Yas Island – Handicap (PA) Dh80,000 (T) 2,200m; Winner: AF Mukhrej, Tadhg O’Shea, Ernst Oertel
7.30pm: Saadiyat Island – Handicap (TB) Dh80,000 (T) 2,400m; Winner: Celestial Spheres, Gary Sanchez, Ismail Mohammed
UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
Desert Warrior
Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley
Director: Rupert Wyatt
Rating: 3/5
Captain Marvel
Director: Anna Boden, Ryan Fleck
Starring: Brie Larson, Samuel L Jackson, Jude Law, Ben Mendelsohn
4/5 stars
'Skin'
Dir: Guy Nattiv
Starring: Jamie Bell, Danielle McDonald, Bill Camp, Vera Farmiga
Rating: 3.5/5 stars
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
The Ashes
Results
First Test, Brisbane: Australia won by 10 wickets
Second Test, Adelaide: Australia won by 120 runs
Third Test, Perth: Australia won by an innings and 41 runs
Fourth Test: Melbourne: Drawn
Fifth Test: Australia won by an innings and 123 runs
if you go
The flights
Etihad and Emirates fly direct to Kolkata from Dh1,504 and Dh1,450 return including taxes, respectively. The flight takes four hours 30 minutes outbound and 5 hours 30 minute returning.
The trains
Numerous trains link Kolkata and Murshidabad but the daily early morning Hazarduari Express (3’ 52”) is the fastest and most convenient; this service also stops in Plassey. The return train departs Murshidabad late afternoon. Though just about feasible as a day trip, staying overnight is recommended.
The hotels
Mursidabad’s hotels are less than modest but Berhampore, 11km south, offers more accommodation and facilities (and the Hazarduari Express also pauses here). Try Hotel The Fame, with an array of rooms from doubles at Rs1,596/Dh90 to a ‘grand presidential suite’ at Rs7,854/Dh443.
MATCH INFO
Real Madrid 2 (Benzema 13', Kroos 28')
Barcelona 1 (Mingueza 60')
Red card: Casemiro (Real Madrid)
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The specs: 2017 Ford F-150 Raptor
Price, base / as tested Dh220,000 / Dh320,000
Engine 3.5L V6
Transmission 10-speed automatic
Power 421hp @ 6,000rpm
Torque 678Nm @ 3,750rpm
Fuel economy, combined 14.1L / 100km
THE BIO
Bio Box
Role Model: Sheikh Zayed, God bless his soul
Favorite book: Zayed Biography of the leader
Favorite quote: To be or not to be, that is the question, from William Shakespeare's Hamlet
Favorite food: seafood
Favorite place to travel: Lebanon
Favorite movie: Braveheart
