China Development Bank has agreed to provide up to 30 billion yuan (US$3.7 billion) in loans within five years to fund Taiwan-invested companies on the mainland.
' Y' D5 I. ]- w- t Headquarters of the China Development Bank is seen in this picture taken on August 22, 2005. [newsphoto]According to a deal signed yesterday between the bank and the Taiwan Affairs Office of the State Council, Taiwan-funded companies planning to invest in such areas as infrastructure, basic industries and high-tech sectors - which are supported by the bank - will be eligible for the loans.
( |7 W" n7 j$ \9 v3 ` The agreement is a good news for Taiwan investors, who are thirsty for capital to fund business expansion on the mainland, said Jay Shane, managing director of the Hangzhou-based Huatong Industries Inc.
# k Q- C* ?, \' M5 Q* t; o "We hope to enjoy better services from mainland banks," he said.
* ^; @5 o) a: J4 Q- E N" \6 } A healthy development of firms invested by Taiwan compatriots on the mainland benefits China s reunification effort, he added.
; I1 V. |1 N) G2 E; p Chen Yunlin, minister of the Taiwan Affairs Office, said cross-Straits economic co-operation has developed rapidly in recent years thanks to the joint efforts of both sides of the Straits.) N" K n9 d& I" ^- j, g
By the end of June, the mainland had approved 66,028 Taiwan-invested firms, involving contracted investment of US$84.1 billion and actual investment of US$40.7 billion.- j/ U+ t+ o4 c+ J, E6 d; }' B
By that time, cross-Straits trade volume had reached US$445.6 billion, with Taiwan s exports to the mainland hitting US$372.7 billion.% Z, H3 m4 o7 u
The mainland has become Taiwan s biggest export market and largest source of trade surplus, Chen said. It has also become the largest recipient of direct investment from the island.
; @; O# E& H3 t! x The vast number of Taiwan firms investing on the mainland need financial support, Chen said.; t2 v' J* Y) l; `% x# H
However, the Taiwan authorities have imposed many restrictions on companies and financial institutions with investment on the mainland, he said. Taiwan-invested firms are facing a lot of financing difficulties.# ~' m4 `3 \) c& ]8 K# l e
"The mainland has always paid special attention to the issue," Chen said.
& f, _8 j. l' i/ Z1 o As early as the beginning of the 1990 s, the mainland arranged more than 3 billion yuan (US$369.9 million) in special loans to fund fixed asset investment by Taiwan firms. Some mainland banks have also provided financial support to these firms. In 2001, the mainland opened its A-share market to Taiwan-invested companies.
6 u9 C$ n* B2 ^% Q7 @ President Hu Jintao said in March that "anything beneficial to Taiwan compatriots and conducive to the promotion of cross-Straits exchanges... we will do it with our utmost efforts and will do it well. This is our solemn commitment."7 }: ?$ X. M4 L! h; I! J
Chen Yuan, president of China Development Bank, said his bank has kept a close watch on cross-Straits economic and trade exchanges, as well as Taiwan-invested companies development on the mainland.
" @7 T( Y' z/ ] "We will take advantage of our role as a policy institution to actively support Taiwan-invested companies financially," he said.
( D0 N/ x( J7 u The support will not only help solve their financial difficulties, but also promote cross-Straits economic and trade exchanges, he said. |