Taiwan firms seek growth through innovation, deeper mainland integration

Taiwan-funded enterprises on the Chinese mainland are increasingly shifting from cost-driven manufacturing toward innovation, automation and deeper integration into industrial and supply chains, business leaders said on Friday.

The remarks were made at the 20th Jiangxi-Taiwan Economic, Trade and Cultural Cooperation and Exchange Conference, held from Thursday to Friday in Lushan, Jiangxi province.

Lee Cheng-hung, president of the Association of Taiwan Investment Enterprises on the Mainland, said new industries and technologies are creating fresh opportunities for Taiwan-funded businesses.

"Taiwan-funded enterprises are shifting from relying on cost advantages and contract manufacturing toward tapping the domestic market and innovation-driven development, and from scattered investment toward deeper integration into the mainland's industrial and supply chains," Lee said.

He said Jiangxi's electronic information, equipment manufacturing, modern agriculture and cultural tourism sectors are highly complementary with industries in which Taiwan businesses have strengths.

Hsia Li-yan, former vice-chairman of the Chinese Kuomintang party and president of the Straits Economic and Cultural Interchange Association, also highlighted opportunities emerging from changes in global industrial and supply chains.