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Fujian: FDI and closer Taiwan ties

By Hu Meidongand Tan Zongyang in Fuzhou | China Daily | Updated: 2012-03-13 08:18

Fujian: FDI and closer Taiwan ties

Scenic Jiangbin Park in Fuzhou, capital of Fujian province. The provincial government said it has built an attractive investment climate.

Fujian: FDI and closer Taiwan ties

A joint venture of oil refining and chemical plant in Quanzhou, Fujian.

Fujian: FDI and closer Taiwan ties

Haicang International Container Terminal at the port of Xiamen.

Fujian: FDI and closer Taiwan ties

The Fuyao Group joint venture founded in 1987 in Fuzhou makes specialized glass for cars and industry.

Fujian: FDI and closer Taiwan ties

Dell Inc was one of the first big multinationals to establish operations in Xiamen.

This year's work report by the Fujian provincial government outlines its plans to attract additional foreign direct investment while maintaining a vigorous open economy even amid the ongoing global economic downturn.

"The province will continue to attract and utilize foreign capital, optimize its export-oriented economy and attract more Fortune 500 global companies to set up businesses," Su Shulin, governor of Fujian province, said in the annual report released earlier this year.

Last year investment in fixed assets in Fujian surpassed 1 trillion yuan ($158 billion), which it plans to increase by 18 percent this year. Foreign direct investment will account for at least $10 billion, the report said.

The year's economic outlook for the coastal province notes a large number of foreign firms already have operations in Fujian, including Boeing, Dell, GE, ABB, Kodak, Nokia, Siemens, Swire, TDK and Panasonic.

Official statistics show Fujian's GPD reached 1.75 trillion yuan last year, up 12.2 percent from 2010. Total trade volume hit 143.3 billion including exports valued at $92.8 billion. The province's exports increased nearly 30 percent last year even though US and European markets remained weak due to global financial turmoil.

"While maintaining the scale of foreign investment, we will utilize foreign capital in a better way," Su said.

The provincial government promised to support local enterprises and quality brands with favorable policies for foreign trade as it promotes technologies, goods and services from local communities on overseas markets.

The government is also encouraging manufacturing companies and processing enterprises to move further up the global industrial chain, but also stay alert to international trade frictions and disputes.

The plan calls for increased exports of services and reprocessed manufactured goods while increasing acquisition of foreign advanced technologies and commodities such as coal, crude oil and crucial machinery.

Su said that the provincial government is already experienced in attracting overseas investment, so it now needs to focus on selecting projects that can help modernize industries.

He suggested that local enterprises strengthen ties with industrial associations and consulting organizations to attract international investment.

Through the cooperation, companies can facilitate the movement of top-end manufacturing, energy-saving and environmentally friendly industries from Western countries to the province.

On the Taiwan Straits, Fujian will continue to strengthen economic ties with Taiwan, Hong Kong and Macao, the annual work report said.

It plans closer cooperation with Hong Kong in finance, tourism, logistics and modern service industries, and with Macao explores tourism and educational opportunities in Portuguese-speaking countries and the European Union.

The province plans to continue implementing the Economic Cooperation Framework Agreement with Taiwan, boost Taiwan merchant districts and help Taiwan-headquartered companies operating in the province upgrade their products from traditional to high tech goods.

In Xiamen, a cross-Straits financial center will open to welcome the first batch of financial institutions from Taiwan to start business on the mainland.

"Fujian will continue to be a forerunner in reform," said Sun Chunlan, the provincial Party Secretary.

"The regional economy is expected to leapfrog in development with its GDP doubling in the next five years", she said.

You may contact the writers through humeidong@chinadaily.com.cn and tanzongyang@chinadaily.com.cn

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