Beijing is adopting a soft and pragmatic people-centred approach on cross-Straits ties to counter Taiwan leader Chen Shui-bian's hard line against the mainland, analysts said yesterday.

Experts on Taiwan studies predicted that the mainland's goodwill and sincerity would appeal to more Taiwan people who hope for peace and stability across the Straits.

Their comments came after President Hu Jintao pledged on Saturday to provide mainland-based Taiwan business people with better aid and services.

During his tour of Xiamen in the eastern province of Fujian, which faces Taiwan across the Straits, Hu said the mainland welcomes more Taiwan people to do business.

The president said business collaboration between the mainland and Taiwan benefits people across the Straits as well as the economic development of both sides, Xinhua News Agency reported.

Hu also expressed his hope that both sides would establish three direct links trade, transport and postal services across the Taiwan Straits at an early date. Taipei has banned such links since 1949.

Li Jiaquan, a researcher with the Institute of Taiwan Studies at the Chinese Academy of Social Sciences, said Hu has sent a clear message that Beijing is focusing on economic issues to serve the fundamental interests of Taiwan people.

"By addressing what concerns the Taiwan public most, President Hu is applying the principle of 'putting people first' to deal with cross-Straits issues," he told China Daily.

"His flexible and pragmatic approach is in contrast to Chen's unreasonable and irresponsible attitude towards cross-Straits relations."

In his New Year speech, Chen used scathing political rhetoric to highlight what he called investment risks on the mainland while vowing to tighten control over cross-Straits economic exchanges.

He also repeated a timetable to write a new "constitution" for Taiwan before 2008, a move widely believed to move the island towards de jure "independence."

Chen's remarks have drawn mounting criticism from the public on the island, especially the business community, for defying wide expectations for him to take a more conciliatory stance.

"When Chen is ignoring local people's common aspirations for economic development and better ties with the mainland, Beijing has moved to heed their call," Li said. "The Taiwan compatriots will decide for themselves which way benefits their well-being most."

Mainland-based Taiwan business people yesterday also hailed President Hu's overture as "positive news" for their investment as well as cross-Straits relations.

"We feel greatly encouraged by President Hu's goodwill gesture towards Taiwan investors and Taiwan people, given Chen's confrontational overture two weeks ago," said Deng Yao-wen, chairwoman of Zunlong Group.

Despite political tension across the Taiwan Straits, bilateral economic relations have grown stronger over the past two decades.

Taiwan investors had funded 67,714 projects on the mainland, with actual investment of more than US$41.48 billion by the end of November last year, according to the latest statistics.

Meanwhile, bilateral trade amounted to US$82.04 billion in the first 11 months of last year.

In another development, Yu Shyi-kun, an ally of Chen, was elected chairman of Taiwan's ruling Democratic Progressive Party yesterday.

Source: China Daily