Following the entry of Chinese qualified domestic institutional investors (QDIIs) into the Taiwan stock market, the focus of Taiwan-China financial exchanges is now on allowing banks to conduct business in each other's territory. We are especially concerned about what role and functions Taiwanese banks will play in the development of the large number of Taiwan-owned companies in China after the banks are allowed to open branches there. The truth is, it is already a bit late for Taiwanese banks to develop business in China where large Taiwanese conglomerates have already forged close ties with Chinese or foreign banking groups. Nevertheless, Taiwanese bank branches will still have many business opportunities in China, once they are willing to be strategic partners of Taiwanese small and medium-sized enterprises (SMEs) there. In the wake of the global financial meltdown, many Taiwanese SMEs in China are struggling to adapt and upgrade in order to tap into the vast Chinese domestic market to make up for their loss of export business. New Taiwanese bank branches in China should be visionary enough to financially support the SMEs efforts. If the SMEs succeed, the Taiwanese banks themselves will be able to gain a foothold in the Chinese financial service market and even attract large Taiwanese conglomerates there. To realize such far-sighted goals, Taiwanese bank branches should adopt a solid business approach and target several major fields of service, such as helping Taiwanese SMEs build distribution networks in the Chinese market and commercialize their newly developed technologies and products. Taiwanese banks can also help with bids by China-based Taiwan companies for mergers and acquisitions to more swiftly expand, and assist with efforts to develop brands. We believe that with vision and creativity, our banks will be able to profit from the new cross-strait financial market opening by cooperating with the many Taiwanese SMEs in China. 