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Xiamen continues to attract Taiwan investors

By Chen Jiewen (China Daily)
Updated: 2009-01-09 07:38

Yuandang Lake (China Daily)

Modern business relations between Xiamen and Taiwan began with the establishment of the Xiamen Special Economic Zone approved by the central government that endowed the city with the mission to develop ties between Xiamen and Taiwan.

Xiamen then gained the attention of Taiwan investors, with large-scale investment spreading further on the mainland from Fujian province, especially from Xiamen.

In the past 30 years since reform and opening-up began, Xiamen has registered great achievements in communication and cooperation with Taiwan. Xiamen has now become one of the most important places for overseas investment, a crucial trade port with Taiwan and a significant passageway for Taiwanese visiting the mainland.

In the 1980s and 1990s, four national-level business zones were established in Xiamen, enabling the city to develop several Taiwan-invested industry clusters.

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In addition, 75 percent of the Taiwan-invested enterprises in Xiamen's Taiwan business investment zones have developed investment projects in other inland cities.

Xiamen has now attracted more than $ 4.7 billion in total direct investment from Taiwan, with $3.1 billion of the total actually utilized capital from the island. More than 2,700 Taiwan-invested projects in the city are involved in industrial production, now pillars of Xiamen's economic development.

The Taiwan Businessmen's Association in Xiamen now has more than 800 member companies. In April 2008, Li Chongde, director of Kaohsiung Association of Small and Medium Enterprises, accompanied by 13 delegation members, arrived in Ludao, Xiamen, to establish a Xiamen office together with members of the Xiamen General Chamber of Commerce. It was the first liaison of its kind on the mainland.

Increasing numbers of Taiwanese investors attach greater attention to tourism, real estate, infrastructure construction and services for the further development of the city's economy.

Xiamen is one of the first ports authorized to open cargo shipping services to Taiwan and regular charter flights between the city and Taiwan were put into operation. Xiamen-Kinmen ferry services have been offering "one-stop ticketing service" for Taiwanese residents traveling to and from the mainland. Taiwan elements are now a crucial part of people's daily life in Xiamen.

Xiamen has also hosted fairs and exhibitions as well as economic and trade events, including the China International Fair for Investment and Trade, the China Xiamen Machinery and Electronics Exhibition and the Cross-Straits Book Fair, which is regarded as an important bridge for Taiwan investors exploring the mainland market.

After Taiwan acquired market access on the mainland when the central government approved the sale of its agricultural products, Xiamen established a Taiwan fruit collection and distribution center.

Today Xiamen remains a hot destination for Taiwan investors. With more and more economic and cultural exchanges between the two places, Xiamen will play a more important role in the cross-Strait economic and trade ties with Taiwan.