Approved mainland investments amount to US$1.536 billion

The China Post staff

Despite the world’s sluggish investment climate, Taiwan companies made approved investments in mainland China totalling US$1.536 billion in the first half of this year, up 13 percent from the same period last year, according to the Investment Commission.

Most of the investments were by companies in the IT industry, an official at the Commission said. The figures reflect a growing need to expand operations in the mainland as well as the mainland’s policy of attracting foreign investment.

Investment projects for Jiangsu province alone amounted to US$328 million during the first six months, up 23 percent from the same period last year. In the monthly investment statistics published yesterday by the Investment Commission, approved foreign investment applications totaled US$1.487 billion during the first six months, down 46.88 percent from the same period of last year.

Meanwhile, the approved investment applications for non-mainland area investments slid 39.49 percent to US$1.53 billion. The approved projects for mainland investments, in contrast, grew 13 percent to US$1.535 billion. In June alone, the Commission approved 99 mainland investment applications, with total proposed investment capital of US$328 million. Among all the approved mainland applications during the first six months, Jiangsu province accounted for 57.94 percent, followed by Guangdong province with 19.84 percent and Zhejiang province with 10.71 percent. The three provinces accounted for 88.94 percent of all the approved investments. Of all the investment projects, 49.97 percent were proposed by IT companies, 9.15 percent by metal processing companies, 4.8 percent by chemical companies, 4.5 percent by machinery makers and 4.4 percent by plastics companies. As for the foreign investments in Taiwan, the Investment Commission approved a total of 544 investment projects during the first six months. Though the total figure dropped 13 percent from the same period of last year, the Commission noted a slight rebound in June, saying that it approved 112 applications in June alone and that marked a year-on-year growth of 4 percent. In 2002, approved foreign investments dropped the most during the first two months with 20 percent in January and 22 percent in February. Besides these two months, the other four months during the first half all showed minor growth.