Taiwanese Investment: New High in Post-SARS Period

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Last updated at: (Beijing Time) Thursday, August 07, 2003

Taiwanese Investment: New High in Post-SARS Period

As the SARS waned away, economic exchanges and cooperation across the Taiwan Straits are flying up to a new height. In the deltas of the Yangtze River and the Pearl River, the recognized homes to traditional mainland-Taiwan joint ventures, none of such enterprises has withdrawn its capital or moved away. Instead, many of them decide to expand their business towards the western regions.

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Shanghai and Jiangsu: still bonanza to Taiwanese business

In early June this year, the Taiwan Semiconductor Manufacturing Co. Ltd., the world's NO. 1 chipmaker in terms of annual sales, formally initiated an investment plan on a new project. The company has since been busy with preparatory works. Acer has reinitiated its marketing promotions in the Greater China region. Besides the Taiwan market, Acer also aims at the mainland's personal computer market.

According to statistics released by the Shanghai Municipal Taiwan Affairs Office, Taiwanese businessmen have a strong passion on investing in Shanghai. From January to May 2003, Shanghai has approved 203 Taiwanese-invested projects, their contracted value having reached over US$42 million. The number of projects increased 160 percent and the contracted value increased 300 percent, compared with that of the same period of last year. Hi-tech projects and financial exchanges surged by a big margin.

In the first quarter, Jiangsu Province has approved 400-plus Taiwanese-funded projects with a total contracted value of US$1.7 billion. Guangdong Province also registered 300-plus new projects with a total value of US$600 million, a growth rate of 11 percent and 56 percent respectively compared with the same period of last year.

Mr. Xie Kunzong, chairman of the Beijing Taiwanese Enterprises Association, said that the investment is a long-term plan because Taiwanese businessmen maintain full confidence in Beijing's sustainable development.

Racing to land in Liaodong Peninsula

During the SARS period, over 2,000 Taiwanese-funded enterprises remained in normal business in northeast China's Liaoning Province. None of them ever suspended manufacture or trade. Instead, groundbreaking ceremonies, opening ceremonies and other kinds of celebrative events took place during this period. Following the Taiwanese-funded chain-business of merchandising, catering and entertaining, other companies, such as those in real estate, textile, agriculture, electronic and auto components, also showed a strong momentum to land in Liaoning Province, the Liaodong Peninsula in particular.

The Chenghui Company of Taiwan and Liaoning Avant-courier Group have jointly invested 8.5 billion yuan (US$1.02 billion) to build the Shenyang Avant-courier Royal Palace, which is to be developed into a venue of comprehensive functions for merchandising, financing, recreations, entertainment and tourism. The project, scheduled to be set to operation in 2008, will provide 10,000 jobs and its business volume is expected to reach 15 billion yuan (US$18.12 billion).

Taiwan's Haoyouduo Group and Legou Supermarket have opened several retailing outlets in Dalian, Liaoning. Taiwanese retailing giants, represented by Legou, Dafuyuan and Haoyouduo, are challenging the world-class conglomerates of Wal-Mart and Carrefour, as well as the local fledgling supermarkets of Hualian, Dashang and Zhongxing, striving to win a bigger share of the local retailing market.

Moreover, Taiwanese businessmen began to seek opportunities in farming, processing of agricultural products and flower planting. Taiwan Donggang Jiasheng Foodstuff Co. Ltd. further increased its investment in strawberry farming. Zeng Yisheng, a Taiwanese businessman, seized the business opportunity to invest in Moth Orchid growing in the famous orchid base in Liaoning's Fuxin.

Heading vigorously to the western regions

Along with the construction of power projects in the Chinese mainland, Taiwan businessmen see huge market potential for electric related equipments such as electric motors, wires and so on. Shihlin Electric & Engineering Corp. plans to set up two joint ventures in Yangzhou and Suzhou in Jiangsu Province. Huaxin Lihua will input 70 million yuan (US$8.46 million) in its Hangzhou factory to expand the production capability for high-voltage cable. To explore the mainland market, Fortune Electric CO., LTD. has been actively contacting local power companies, hoping to establish two or three joint ventures in Shanghai and Xi'an, capital of northwest China's Shaanxi Province.

According to Xun Xiaoping, director of the Xi'an Municipal Taiwan Affairs Office, Taiwan businessmen began to consult the office when the SARS became gradually under rein. Since May this year, over 20 Taiwan businessmen have expressed their willingness to invest in Xi'an. Among them, the Uni-President Enterprises Corp. has sent a market research team to Xi'an for the second time. Xun said that it's the state's Western Development Strategy that has attracted them to the northwestern city, though they already have joint ventures in the costal areas.

Recently, Lin Zujia, a researcher with the Taiwan think tank "National Policy Fund Committee", pointed out that the trade figures indicate that trade development across the Taiwan Straits has gone through the SARS impact. Thus, Taiwan and the mainland will remain in close business cooperation. Another investigation shows that 75 percent of Taiwan's senior executives are willing to work in the mainland. (China.org.cn)

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