Tsunami-proof

Science and technology-intensive corporations in Fujian province say that the financial tsunami has very little effect on them.

Fujian, situated in southeast China on the coast of the East China Sea, faces Taiwan across the Taiwan Straits and adjoins Zhejiang and Guangdong, two provinces representing the Yangtze River Delta and the Pearl River Delta, on the east and south, respectively.

Taiwan enterprises are a major economic development force for Fujian, which has 9,658 Taiwan-invested projects currently.

"Science and technology-intensive enterprises will still have a very bright future on the Chinese mainland," Hu Ching-piao, a chief strategy consultant of Fujian Quanzhou Lugu Building Co Ltd, says.

Lugu is a high-tech industry center for Taiwan business people in Quanzhou city in Fujian.

According to Hu, six Taiwan investors have put in more than 150 million yuan to the infrastructure construction of the center so far.

The construction started in June last year. The total area of the center will occupy 5.6 sq kilometers.

The first group of high-tech Taiwan companies broke ground for their production facilities in December last year, planning a total investment of $330 million.

They mainly produce solar cell chips, other solar energy equipment and related products. The companies are expected to have an annual output value of up to 12 billion yuan.

Hu says the six investors intend to finish the construction of the whole center in eight to 10 years. Their investment keeps steadily growing even in the midst of the global financial crisis.

"The economic development trend will not stop," Hu says. "I predict that the economic strength of China will exceed the United States in 2030."

The growth of science and technology will be a guarantee for the economic development of China, he says.

Hu was a "minister of science and technology" of Taiwan in the past. After he retired in 2004 and finished a three-year restriction set by the "government" of Taiwan, he was eager to come to the mainland to help build the high-tech center last year.

He does not only give professional ideas for the center's building, but also brought a lot of large Taiwan companies into the center.

"Crisis is also a chance for us," says Lo Ching-hsing, secretary of chairman of Xiamen Tsann Kuen Enterprise Co Ltd, which produces electrical appliances. Lo predicts a lot of smaller companies will shut down due to the financial crisis, but maintains Tsann Kuen will benefit from it.

Another electrical company is also confident and has a strategy.

Tseng Chin-chao, chairman of Xiamen Doowell Electron Co Ltd, says his company will shift part of their business to real estate and creative industries to ride out the crisis.

"We are confident our business will continue to be profitable," says Tseng Chin-chao.

(China Daily 12/08/2008 page3)