Taiwan firms targeting mainland market

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At the 11th Cross-Strait Fair in the southeastern city of Fuzhou, Taiwan enterprises are seeking to take advantage of the economic stimulus measures in the mainland. And they've signed more contracts with mainland companies to speed up cooperation.

Signing contracts is the biggest priority at the cross-strait fair. In just two days, agreements have been reached on about 30 key projects. The Taiwan-based Teco group and the Fujian Investment Development Company signed a wind power generator deal. They say they're targeting the new energy sector of emerging markets, backed by support measures from the government. The economic situation on the west coast of the Taiwan strait has also affected their decisions.

Manager of Teco Electric Machinery Co. said "This area has a high-speed railway, and it's close to several harbors. These elements are very important for our logistics in the mainland, Taiwan, Hong Kong and Macao and in southeast Asia."

With the implementation of direct transport links between the two sides, as well as the announcement of an economic zone on the west bank of the strait, this year's fair is seeing more business opportunities in the service trade, the software industry and in new energy development. Taiwan-based firms are now focusing more on the mainland, due to the shrinking international market. Optoelectronic firms are especially enthusiastic.

Manager of Yann Bang Electrical Machinery Co. said "Taiwan firms should use their technological advantages to make innovations, and then consolidate with resources in the mainland market. This will help us find new methods under the current financial crisis."

With Taiwan firms thought to have the edge in the optoelectronic industry, and Fujian having a sound industry chain and abundant resources, the two sides complement each other.

Fujian is also stepping up its ties with Taiwan in other sectors, including finance, hi-tech and infrastructure.

Chen Weimin, Fuzhou Vice Mayor said "We have planned a 20-square-kilometer high-tech park for Taiwan-funded firms. The industrial connection between the two sides will be beneficial for all."

Figures show Fujian's GDP increased more than seven percent in the first quarter of this year. Taiwan-funded firms, ranging from those in the chemical, machinery and electronics industries, have become the leading local economic drivers.