The famous Taiwan enterprise Master Kong Group is now selecting a site for its factory in Lanzhou. The Taiwan Lantian Group is preparing to build a digital port there too. And the Anlijie Group of Taiwan casts its attention on a power plant project in Gansu Province. All these moves show Taiwan enterprises' intention to invest in Gansu and the west China.

Many local people do not deem northwest China's Gansu Province an ideal place for making investment, for its economy has fallen far behind the eastern regions. At present there are 231 Taiwan enterprises in the province, majority of them running restaurants and photo studios. The biggest one of them, the Zhenglin Company's capital is less than 500 mln yuan, said Zhao Shaozhi, director of the Taiwan Affairs Office of Gansu Province.

But amazing changes have taken place there. More and more Taiwan enterprises have begun to attach importance to business opportunities in Gansu. Three projects, each having a value over 100 mln yuan have been settled in Gansu this year. The Master Kong Group has made definite its intention to build 12 production lines for instant noodles in Lanzhou after completing three study tours to the city since Oct 2004. The Lantian Group, which has built digital ports in Dalian, Qingdao and Shanghai, has decided to move west by investing US $50 mln in building a digital port in Lanzhou. Taiwan Anlijie Group may invest 1 bln yuan into a power plant project.

Competitions in eastern China are growing fiercer and cost for electricity, lands, and labors have kept on rise. The vast west China has advantages in this regard. Therefore it has become an inevitable trend for Taiwan enterprise to go west. Besides the "Develop the West" strategy and favorable environment for investment are important factors for them too.

According to Zhao, there is lots of work for people in the west to do. The government needs to transform functions to provide high-quality services for enterprises; they should ensure implementation of polices and improve ecological environment, etc.

By People's Daily Online