Taiwan Businesses Invest More on Chinese Mainland

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Last updated at: (Beijing Time) Thursday, April 04, 2002

Taiwan Businesses Invest More on Chinese Mainland

Taiwan businesses have poured more investment into the Chinese mainland over the past year, covering more regions and sectors. By the end of 2001, China's mainland had approved 50,838 Taiwan- funded projects and its actual use of Taiwan investment had totaled 29.34 billion U.S. dollars, according to MOFTEC statistics.

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Taiwan pours more investment into mainland

Taiwan businesses have poured more investment into the Chinese mainland over the past year, covering more regions and sectors, a trade official said on Thursday in Beijing.

Latest figures released by the Ministry of Foreign Trade and Economic Cooperation (MOFTEC) show the Chinese mainland approved 4, 214 Taiwan-funded projects in 2001, involving 6.914 billion U.S. dollars worth of contractual agreements, a 73.1 percent rise over the previous year, the highest since 1995.

Actual use of Taiwan investment climbed 29.8 percent last year to 2.979 billion U.S. dollars, a reversal of continuous negative growth since 1997, said Wang Liaoping, a MOFTEC official in charge of trade with Taiwan, Hong Kong and Macao.

More small and medium-sized Taiwan businesses had joined the " investment fever" initiated by larger firms to seek more opportunities and larger market shares, he said.

While investments continue to pour into coastal provinces including Fujian and Guangdong, the Yangtze River Delta had become a new attraction for Taiwan investors, Wang said.

Investment covering wide range of areas

As a growing number of Taiwan-based manufacturing enterprises are seeking expansion in the cities of Kunshan, Suzhou and Wuxi, those in the commerce and service sectors have set up their businesses in Shanghai. High technology companies, on the other hand, have found a niche in northern cities such as Beijing, Tianjin and Shenyang.

As the host city for the 2008 Olympiad, the Chinese capital Beijing has provided ample opportunities to Taiwan investors in infrastructure development and environment protection.

The country's vast central and western regions, on the other hand, have embraced Taiwan businessmen with preferential investment policies, rich natural resources and low cost land and human resources.

Investment involving various sectors

Twenty-six sectors on the Chinese mainland received Taiwanese investment last year, covering farm produce processing, industrial manufacturing and service industries, Wang said.

In 2001, more Taiwan-based manufacturers of computers, peripherals and accessories and financial institutions started operation in the mainland. Cooperation was going on between the two sides of the Taiwan Strait in aviation and medical sectors as well.

By the end of 2001, China's mainland had approved 50,838 Taiwan- funded projects and its actual use of Taiwan investment had totaled 29.34 billion U.S. dollars, according to MOFTEC statistics.

Taiwan Pours More Investment in Mainland

Taiwan Authorities to Open Direct Taiwan Investment in Mainland: on the morning of November 7, 2001,Taiwan "Administrative Yuan" adopted the executive plan for the "implementation of investment in the mainland, active opening, and effective management" put forward by the department concerned, formally liberalizing direct investment in the mainland and abolishing the investment ceiling of US$50 million.

Taiwan Investment to Be Encouraged after China's WTO Entry: China will continue to encourage Taiwan investment in the mainland and protect Taiwan investors' interests after the two sides of the Taiwan Straits enter the World Trade Organization (WTO), a spokesman for the Taiwan Affairs Office of the State Council said.

Direct Taiwan Investment in China's Mainland Shoots Up: Statistics from Taiwan "Ministry of Economic Affairs" show that in the first nine months of this year, direct Taiwan investment in China's mainland totaled US$2.122bn, a near 19 percent increase over last year.

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