Taiwan Investments In China Now Total US$129.5
Billion
by Paul
Denlinger
Posted Jan. 9, 2004
New figures released suggest that the aggregate total of
Taiwan investments in China have now reached US$129.5 billion
by the end of June 2003. The figures, which were released
in Taipei by the magazine Investing in China, are far higher
than both Taiwan's and China's official numbers.
According to Taiwan's economics ministry, total investments
in China are now US$31.7 billion for the same period. The
same statistics for the same period from the Chinese Ministry
of Commerce are US$65.4 billion.
The figures were released when the magazine celebrated
its tenth anniversary in Taipei, and cover the island's
companies investments in China's 31 provinces. It has been
very difficult for economists and the general public to
get accurate figures, because in the face of an anti-Chinese
government political policy on the part of Taiwan, Taiwan
companies do not like to disclose their figures. A sizeable
portion of Taiwan's population, like the current Taiwan
administration, favors political independence for the island,
and public announcements of large investment numbers would
invite denunciation of the investing companies. Also, Taiwan's
economics ministry, which oversees and approves cash investments
in China, tries to keep the numbers "manageable".
Taiwan's government also places severe restrictions on
the amount of capital which can be sent to China by Taiwan
companies. As a result, Taiwan companies most frequently
resort to setting up shell companies in third countries,
then remitting the investment from Taiwan to the third country.
From there, the investment money is then sent to China.
In contrast, official Chinese figures tend to go to the
high side, emphasizing the high degree of integration of
both economies, and the patriotism of investors from Taiwan.
The magazine did not disclose the methodology it used
to get its numbers.
The report also covered the most popular cities and provinces
for investment. The most popular cities, beginning with
number one, are Suzhou, Dongguan, Zhangzhou, Guangzhou and
Wuxi.
The cities with the largest number of registered Taiwan
companies are Dongguan, Suzhou, Shenzhen, Guangzhou and
Xiamen.
The provinces and cities with the greatest amount of Taiwan
investments are Jiangsu, Guangdong, Fujian, Zhejiang and
Shanghai. The provinces and major cities with the largest
number of registered Taiwan companies are Guangdong, Jiangsu,
Fujian, Shanghai and Zhejiang.
The report shows that the largest number of registered
Taiwan companies and investments are still concentrated
in southern China, mainly on the coast. But it also reveals
that there is a trend to new investment in inland China
provinces including Sichuan, Hubei and Hunan.
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