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OO RUEHFK RUEHGH RUEHHM RUEHNH
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O 110510Z MAY 06
FM AIT TAIPEI
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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