Crucial cross-Straits ties for Zhangzhou industries

A factory with investment from Taiwan expected to cost more than 1 trillion yuan ($160.4 billion) recently began installing production equipment in Zhangzhou city, Fujian province.

Built by Formosa Plastics Corp - the world's leading producer of PVC powder - the facility when operational is expected to have annual revenues of 40 billion yuan and generate 1.5 billion yuan in taxes.

In addition to Formasa Plastics, Zhangzhou is already home to a range of Taiwan-funded enterprises, whose combined revenues are almost half the city's total.

Statistics show Zhangzhou had $11 billion in total utilized capital from Taiwan by the end of 2011, 50 percent the provincial total.

Zhangzhou began drawing investment from neighboring Taiwan when China began reforms and opening-up policies in the late 1970s.

Over the past 30 years, Zhangzhou has made a number of breakthroughs in Taiwan cooperation, including Fujian's first agricultural enterprise with investment from the island. Today its agricultural industry has the most capital from Taiwan in the province and also tops the list nationwide.

The city also established China Flower Expo, the country's first, to help exchange ideas and build business ties in cross-Straits agriculture and trade .

To further boost the collaboration, the city government unveiled a series of policies to lower the threshold for Taiwan investment in local agriculture. Authorities also provide favorable policies in finance, land use and taxes.

In addition, the city has streamlined administrative approval procedures and moved to increase work efficiency.

It also established a specialized court to deal with cases concerning Taiwan to better protect the rights of Taiwan businesspeople.

xuxiao@chinadaily.com.cn

(China Daily 11/14/2012 page16)