The actual investment from Taiwan in the Chinese mainland totaled US$3.4 billion in 2003, while indirect trade volume between the mainland and Taiwan reached US$58.4 billion, exceeding US$50 billion for the first time in history, an official said Wednesday.

Addressing a seminar on Taiwanese firms listed on mainland stock markets, Li Bingcai, executive deputy director of the Taiwan Affairs Office of the State Council, the Chinese cabinet, said the mainland approved 4,495 Taiwanese-funded enterprises involving US$8.6billion last year.

To date, the mainland had hosted 60,623 Taiwanese-funded enterprises by the end of 2003, involving US$70 billion in contractual terms and US$36.5 billion in actual investment.

Before China introduced reform and opening up to the outside world in 1978, China used little direct investment from outside the mainland, including Taiwan, which is separated from the mainland by the Taiwan Straits.

The official said stability and peaceful relations across the Taiwan Straits is needed for cross-strait economic exchanges and cooperation.

Despite booming economic exchanges across the Taiwan Straits, cross-strait tensions were heightened due to Taiwan authorities' pursuit independence in the past several years.

He promised continued efforts by the Chinese mainland to protect the legitimate interests of Taiwanese investors and promote cross-strait economic and social exchanges, including helping eligible Taiwanese firms get listed on the mainland stock market.
 
(Xinhua News Agency February 26, 2004)