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Taiwan Investors Flock to Xiaoshan of Zhejiang
A recent opinion poll of Taiwan business people found Xiaoshan, a relatively unknown small city in East China's Zhejiang Province, had one of the best investment environments.
The poll, which was carried out by the biggest trade union in Taiwan, the Electronics and Electric Machinery Association, looked at 33 cities in 9 provinces for more than one year.
They carried out a series of tests, including looking at the cities natural surroundings and their infrastructures. The results show areas along the lower reaches of the Yangtze River in East China are favourite among Taiwan business people.
But Xiaoshan seems to be a particularly favourite, with an excellent infrastructure and management environment.
"This is because of our good service and our high reputation among Taiwan business people,'' said Shen Guocan, vice-director of Xiaoshan Economy and Technology Development Zone.
Shen said the development zone was home to more than 40 Taiwan-funded enterprises with a total investment of US$330 million. These businesses employ a third of the zone's workers.
"Ever since 1993, when the first investment project was introduced to the area from Taiwan, we have been focusing on getting investment from the island,''said Shen.
Xiaoshan is a producer of machinery parts and, like Taiwan, it has many small and medium-sized firms.
Taiwan business people consider it a haven where they can make big profits.
More than 92 per cent of the Taiwan-funded enterprises in the development zone are profit-making firms. These efforts meant the zone had a gross industrial value of 4.19 billion yuan (US$505 million) in 1999 and is expecting to reach 6 billion yuan (US$723 million) by the end of this year.
The setting up of "Taiwan Machinery Town'' inside Xiaoshan has also revitalized a number of the 60 local machinery enterprises in the city.
By reducing land prices to the minimum level, establishing a 24-hour customer complaints system and by helping out in other ways, the zone has formed friendly relations with its Taiwan customers.
"Many contracts are signed or decided on with Taiwan investors at gatherings,'' added Shen.
"And judging from the first 6 months of 2000, investment from Taiwan in Xiaoshan is still on the increase.''
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