The China Development Bank (CDB) has agreed
to provide up to 30 billion yuan (US$3.7 billion) in loans in the
next five years to support Taiwan businesses that invest in the
mainland.
According to a deal signed yesterday between the bank and the
State Council's Taiwan
Affairs Office, Taiwan businesses looking to invest in areas
such as infrastructure, basic industries and the high-tech sector
are eligible to apply for loans.
The agreement is good news for Taiwan investors, who are thirsty
for capital to fund business expansion on the mainland, said Jay
Shane, managing director of Hangzhou-based Huatong Industries
Inc.
"We hope to enjoy better services from mainland banks," Shane
said.
The healthy development of mainland firms funded by Taiwan
compatriots benefits China's reunification effort, Shane added.
Chen Yunlin, director of the Taiwan Affairs Office, said
cross-Straits economic cooperation has developed rapidly in recent
years thanks to the joint efforts of both sides.
By the end of June, the mainland had approved 66,028
Taiwan-backed firms, involving contracted investments of US$84.1
billion and actual investments of US$40.7 billion.
In addition, cross-Straits trade volume had reached US$445.6
billion, with Taiwan exports to the mainland valued at US$372.7
billion.
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.
However, the Taiwan authorities have imposed many restrictions
on companies and financial institutions with investments on the
mainland, Chen said, adding that Taiwan-backed firms face a lot of
financing difficulties as a result.
In the early 1990's, the mainland arranged more than 3 billion
yuan (US$369.9 million) in special loans to fund fixed asset
investments by Taiwan firms. In 2001, the mainland opened its
A-share (or state share) market to Taiwan-backed companies.
In March, President Hu Jintao
said: "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."
Chen Yuan, president of CDB, said the bank has kept a close
watch on cross-Straits economic and trade exchanges, as well as
Taiwan-backed companies' development on the mainland.
"We will take advantage of our role as a policy institution to
actively support Taiwan-invested companies financially," he
said.
The support will not only help solve their financial
difficulties, but also promote cross-Straits economic and trade
exchanges, he added.
(China Daily September 8, 2005)