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US$3.7b loan to help Taiwan-funded firms
By Su Bei (China Daily)
Updated: 2005-09-08 05:39

China Development Bank has agreed to provide up to 30 billion yuan (US$3.7 billion) in loans within five years to fund Taiwan-invested companies on the mainland.

Headquarters of the China Development Bank is seen in this picture taken on August 22, 2005. [newsphoto]

According to a deal signed yesterday between the bank and the Taiwan Affairs Office of the State Council, Taiwan-funded companies planning to invest in such areas as infrastructure, basic industries and high-tech sectors - which are supported by the bank - will be eligible for the loans.

The agreement is a good news for Taiwan investors, who are thirsty for capital to fund business expansion on the mainland, said Jay Shane, managing director of the Hangzhou-based Huatong Industries Inc.

"We hope to enjoy better services from mainland banks," he said.

A healthy development of firms invested by Taiwan compatriots on the mainland benefits China's reunification effort, he added.

Chen Yunlin, minister of the Taiwan Affairs Office, said cross-Straits economic co-operation has developed rapidly in recent years thanks to the joint efforts of both sides of the Straits.

By the end of June, the mainland had approved 66,028 Taiwan-invested firms, involving contracted investment of US$84.1 billion and actual investment of US$40.7 billion.

By that time, cross-Straits trade volume had reached US$445.6 billion, with Taiwan's exports to the mainland hitting US$372.7 billion.

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