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.
( v9 _9 b5 c' ^0 b5 c9 R4 S) } 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.
" K4 h- I7 Q3 b7 c. z: A+ V Y 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.: K0 e( ? p2 R0 ^" O
"We hope to enjoy better services from mainland banks," he said.- K; ]. ^) X+ B/ A# [/ m8 Q0 |5 E8 m
A healthy development of firms invested by Taiwan compatriots on the mainland benefits China s reunification effort, he added.: { W) u& t% i3 p) B; z: t
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.6 K* P/ L6 D! z/ y# ~" q
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.
4 w3 u5 K+ n s ~# Q& _: O9 h 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.3 M9 i0 v& }) Z3 j6 n! h! g4 Q
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.
& X! g1 @0 `6 K2 l The vast number of Taiwan firms investing on the mainland need financial support, Chen said.
9 K* M' k' q% c3 N: U6 T 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./ C) E5 J W5 L5 Y( t! w; \
"The mainland has always paid special attention to the issue," Chen said.! e2 _ ?# m* [5 o a
As early as the beginning of the 1990 s, the mainland arranged more than 3 billion yuan (US$369.9 million) in special loans to fund fixed asset investment by Taiwan firms. Some mainland banks have also provided financial support to these firms. In 2001, the mainland opened its A-share market to Taiwan-invested companies.
/ {/ ~# F. k/ z2 ^" n President Hu Jintao said in March that "anything beneficial to Taiwan compatriots and conducive to the promotion of cross-Straits exchanges... we will do it with our utmost efforts and will do it well. This is our solemn commitment."1 m1 S+ h" _$ 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.
; O1 k. ]5 z/ z: J9 m P% R9 h r "We will take advantage of our role as a policy institution to actively support Taiwan-invested companies financially," he said.3 S: D, L: E0 ]# x+ l% y8 V/ P' Y
The support will not only help solve their financial difficulties, but also promote cross-Straits economic and trade exchanges, he said. |