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Last updated at: (Beijing Time) Wednesday, April 07, 2004

Taiwanese businessmen further expand investment in Chinese mainland

The "presidential election", which has annoyed Taiwan for a couple of months, taught the Taiwan businessmen a political lesson. As the result released by the Taiwan election authorities indicates, Chen Shui-bian and Annette Lu, candidates for Democratic Progressive Party, won 6,471,970 votes, or 50.11 percent of the total;


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The "presidential election", which has annoyed Taiwan for a couple of months, taught the Taiwan businessmen a political lesson. As the result released by the Taiwan election authorities indicates, Chen Shui-bian and Annette Lu, candidates for Democratic Progressive Party, won 6,471,970 votes, or 50.11 percent of the total; while Lien Chan and James Soong, of the coalition of the Kuomintang and People First Party, won 49.89 percent of the votes, which makes the businessmen feel pessimistic for the relationship between Taiwan province and the Chinese mainland.

Over 100, 000 Taiwan businessmen went home to vote for Lien Chan and James Soong, but they felt greatly disappointed with the result. Worrying about the failure of "three direct links", a lot of businessmen have decided to further expand their investment in the Chinese mainland. In the meantime, they've speeded up their localization, including grooming management personnel and financing channels. Many enterprises have decided to step up their process of going public at the Chinese mainland.

At gatherings of the Association of Taiwan Businessmen in Shanghai after "3.20 election", many Taiwan businessmen said the "three direct links" could hopefully be realized if Lien and Soong have been elected. If so they would intensify mechanism for cash flowing back to Taiwan. However, the "election" result was beyond their expectations. The chaotic situations in Taiwan after "election" made them feel even far away from home.

In fact, numerous Taiwan enterprises have quickened their deployment in Chinese mainland in recent one or two years. With the vanishing of their hope for "three direct links", the localization process becomes the first thing of Taiwan businessmen after their returning to Shanghai. Says Liao Guobin, Vice Chairman, Pudong branch of Shanghai Taiwan Businessmen Association.

A large electronic company that listed in Taiwan had planned to build a factory in East China prior to the "election". It also planned to go public in Shanghai. The boss demanded to quicken implementation of the plan to go public so soon as the "election" result was out.

The "election" has become a hot topic for the members of Association of Taiwan Businessmen in Shanghai, Suzhou and Kunshan. And expanding the investment in Chinese mainland has become a focal point of their common concern.

The Taiwan authority announced that enterprises could go public provided they set up operation headquarters in Taiwan. But many businessmen even did not take the good news into consideration. Instead, they turned to the capital market in the Chinese mainland, where still exit lots of restrictions for Taiwan enterprises to go public.

In recent years, a number of technology and capital-intensive industries in Taiwan have gone west. The Taiwan authority's restrictions made bosses of large-scale Taiwan-funded enterprises to complain about the difficulties in running business. Under the fierce competition and the deadlock between Taiwan under the domination of Chen Shui-bian and the Chinese mainland, Taiwan's investment to the Chinese mainland keeps quickening its paces. This shows that the economic and trade ties between Taiwan and the Chinese mainland can by no means be prevented by political factors. The Taiwan banks, insurance and security practitioners, who are eager to access the market in Chinese mainland, feels worried for the succession of Chen Shui-bian.

By People's Daily Online


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