Taiwan Investment Increases in Chinese Mainland

SHENYANG, July 20 (Xinhua) -- Investment of Taiwan-funded enterprises at northeast China's Shenyang Technological and Economic Development Zone has reached 340 million U.S. dollars accounting for 11 percent of the zone's entire overseas investment.

The industrial output value for the Taiwan-funded enterprises in 1998 amounted to 1.5 billion yuan ( 180 million U.S. dollars), with a profit of 240 million yuan.

Officials with the zone's administrative committee said they have provided the Taiwan businesses with a series of preferential policies in value-added tax, income tax, and land-use fees.

The committee will return 25 percent of the value-added tax to those production-oriented enterprises whose investment exceeds 5 million U.S. dollars within three years, and it will exempt land- use fees for six years for new high-tech enterprises in the zone.

Statistics from the Ministry of Foreign Trade and Economic Cooperation for the first quarter of this year show that the number of Taiwan-funded projects in the Chinese mainland stood at 526, with 489 million U.S. dollars of used investment.