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Business ties with Taiwan deepen
( 2002-04-05 09:53 ) (8 )

Taiwan businesses have increased their investment in the Chinese mainland over the past year, covering more regions and sectors, said an official from the Ministry of Foreign Trade and Economic Co-operation (MOFTEC) on Thursday.

Latest figures released by MOFTEC show the Chinese mainland approved 4,214 Taiwan-funded projects in 2001, involving US$6.914 billion worth of contractual agreements, a 73.1 per cent rise over the figures for the previous year, and the highest amount of investment since 1995.

Actual Taiwan investment climbed 29.8 per cent last year to US$2.979 billion, 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 in 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 has become a new attraction for Taiwan investors, Wang said.

By the end of 2001, the Chinese mainland had approved 50,838 Taiwan-funded projects and its actual use of Taiwan investment totalled US$29.34 billion, according to MOFTEC statistics.

Wang said that cross-Straits trade volume reached US$32.34 billion in 2001, up 5.9 per cent over that for the previous year.

The mainland imported goods from Taiwan worth US$27.34 billion, up 6.3 per cent, and exported goods worth US$5 billion to Taiwan, down 0.8 per cent.

Overseas-funded enterprises, mostly funded by Taiwan, have been playing a major role in the cross-Straits trade. The figures for their trade volume, exports to and imports from Taiwan accounted for 63.2 per cent, 51.2 per cent and 65.4 per cent of the total figures in these areas with Taiwan for 2001.

Wang said that there was still a large trade imbalance between the mainland and Taiwan, in Taiwan's favour, which appeared to be growing.

He called on Taiwan authorities to accept the one-China principle, seize the opportunities and work for "direct and two-way" trade and economic exchanges between the two sides, so as to further expand co-operation across the Straits.