Taiwan puts two-thirds external investment in mainland

According to Hong Kong media, the continued cross-Straits trade development is free from political influences. Taiwan investment in the mainland is growing rapidly and covers increasing industries. On the other hand, Taiwan compatriots are enjoying continuous supply of commodities from the Chinese mainland. Cross-Straits economies are increasingly integrated, and people's livelihoods are more interdependent, which has solidified cross-Straits bonds.

According to statistics from Taiwan, investment by Taiwanese businessmen in the mainland has increased sharply, which has not only topped the list in the Island's external investment, but has also accounted for over two-thirds of the Island's external investments over the past five years, increasing from 33.93 percent in 2000 to 67.24 percent in 2004.

Electronic industry took up the biggest share of 41 percent of the total investment, doubling the US$1.5 billion in 2000 to 3 billion in 2004; metal products accounted for 9 percent, chemical and plastic products both for 7 percent and non-metal products 5 percent. Influenced by China's accession to the World Trade Organization (WTO), investment in the service sector also rose rapidly to over US$1 billion, making up 4.04 percent of the total.

From 1991 to February 2005, Taiwan businesspeople invested a total of US$41.941 billion in 33, 314 cases. As statistics from the Chinese mainland show, by the end of last September, the cases amounted to 63, 616 with a contractual investment of US$77.374 billion, and paid-in capital US$39.369 billion.

Moreover, statistics from Xiamen Customs show Fujian Province's petty trade with Taiwan reached US$18.03 million, up 97.8 percent from 2003. At an even higher growth rate, the value of imports and exports hit US$3.255 million in the first two months this year, or 2.6 times as much as in the same period last year. Major goods into Fujian were components and accessories for machine tools and lathes and those to Taiwan were mainly aquatic products such as shellfish, frozen crab, shrimp and fish.

By People's Daily Online