"Until May 20, 2008, Chen is still the country's chief policymaker, but after I am elected as the president, I will carry out my promises and things will be different," Hsieh said during a speech at the American Chamber of Commerce in Taipei yesterday. Hsieh said that he was sure Chen would accept his proposals.

"After all, the whole point of electing a new president is to implement new policies that will move the country forward," he said.

Hsieh's statement came after American businessmen at the AmCham meeting questioned whether he would distinguish himself from the current president, who recently distanced himself from Hsieh's economic proposals, particularly on the issue of lifting the 40 percent cap Taiwanese investment in China.

In his speech, which was on the theme of "The Well-being Economy - The Strategy for Taiwan's Economic Development," Hsieh said he is open-minded on cross-strait trade policies, as long the policies do not affect the status quo across the Taiwan Strait or sabotage Taiwan's national identity.

He reiterated his proposal of establishing a dynamic management mechanism for Taiwanese businessmen investing in China, saying the new Taiwan government will review the investments on a case-by-case basis.

"Sticking to the blanket 40 percent investment cap would be far easier than managing a dynamic system, but I believe the government bureaucracy needs to work harder to fulfill the expectations of the people," Hsieh said.

He added that a one-stop window would be established for the dynamic management system to accommodate Taiwanese businessmen.

Hsieh also specified that his proposal was different from that of the opposition Kuomintang presidential candidate Ma Ying-jeou (馬英九).

"Unlike my opponent, Mr. Ma, who said he will completely lift the investment ceiling if he is elected, I believe dynamic management would still be necessary," Hsieh said.

He added that certain areas, such as national defense and agriculture, should remain under regulation even if the rules for investment in China are eased.

As for the direct flight issue, which is of concern to many foreign and local investors, Hsieh said he supports the idea of direct flight across the Strait, but added that the measure should be implemented in phases.

"I think we should start from charter flights, then expand, increasing frequency from (special holidays) to weekends, then to mornings," he said.

Starting with chartered flight would also serve to avoid the thorny ideological disputes between the two sides over the categorization of air routes as domestic or international.

Speaking on how to create a competitive environment, Hsieh once again stressed the necessity of avoiding double taxation for those who do business in Taiwan and China, the necessity of lowering to below 10 percent the taxes on inherited property and gifts, and the importance of the recovering capital remitted out of the country via underground or illegal channels.

On Monday, Hsieh made public his taxation policies which immediately drew fire from DPP members.

"In the past, people were mostly concerned about issues of 'fairness' regarding taxation. But in order to compete against flights, then expand, increasing frequency from (special holidays) to weekends, then to mornings," he said.

Starting with chartered flight would also serve to avoid the thorny ideological disputes between the two sides over the categorization of air routes as domestic or international.

Speaking on how to create a competitive environment, Hsieh once again stressed the necessity of avoiding double taxation for those who do business in Taiwan and China, the necessity of lowering to below 10 percent the taxes on inherited property and gifts, and the importance of the recovering capital remitted out of the country via underground or illegal channels.

On Monday, Hsieh made public his taxation policies which immediately drew fire from DPP members.

"In the past, people were mostly concerned about issues of 'fairness' regarding taxation. But in order to compete against our Asian neighbors such as Hong Kong, South Korea, and Singapore, we should view taxation from the angle of 'competitiveness," said Hsieh.

He also offered suggestions on simulating domestic demand and increasing employment.

Hsieh said he knows that public infrastructure is one major way to boost domestic demand, however, infrastructure development that includes building highways and steel plants that jeopardize the environment or accelerate climate change are not on his agenda, he said.