Financial cooperation between the Chinese mainland and Taiwan has came into the spotlight these days as Chinese Premier promised to facilitate the signing of "comprehensive agreement on economic cooperation" between the two sides.

While reporting the work of his government to lawmakers on Thursday, Premier Wen said the mainland hopes to "gradually establish economic cooperation mechanisms tailored to both sides of the Straits".

These remarks, seen by many as positive signs for the two sides to enhance cooperation in meeting challenges brought about by the global financial turmoil, have fueled sizzling discussions among lawmakers and political advisors gathering in Beijing for their national annual sessions.

Reciprocal cooperation

"External trade has always been key to Taiwan's economic growth, contributing as much as 68 percent," said a scholar on Taiwan issues, Wu Nengyuan.

"Drastic drop in external demand especially in the European and the US markets amid global downturn is a major problem of Taiwan," said Wu, a member of the National Committee of the Chinese People's Political Consultative Conference (CPPCC), the top political advisory body of the country.

"Against this backdrop, it's especially significant that the two sides of the Taiwan Straits complement each other in boosting economic development," he said.

Taiwan entered a recession in the latter half of last year as a result of the global economic slowdown.

Apart from a 5-percent jobless rate last December, the highest for more than five years, Taiwan's gross domestic product contracted 1.02 percent year-on-year in the third quarter, the first drop in five years as domestic and external demand weakened, according to local statistics.

"Taiwan should further explore the mainland market, now the world's third largest economy that has potential giant domestic demand," Wu said.

The Chinese government's 4-trillion-yuan stimulus package and its program to subsidize electric appliances buyers in the rural areas will create more opportunities for Taiwan-funded companies on the mainland, according to Wu.

"The development of Taiwan-funded companies can also help the mainland as they create more jobs," said Kai Qinghai, a deputy to the top legislature, the National People's Congress (NPC).

According to Zheng Songyan, a NPC member and mayor of Fuzhou, capital of eastern Fujian Province, Taiwan has advanced technologies, good research capabilities and developed service sector, while the mainland excels in manufacturing industry.

"The two sides should give full play to their advantages to explore both domestic and external markets," said Zheng, who promised that Taiwan compatriots can complete the business start-up procedures in his city in only a single day.