Experts from across the Taiwan Straits on Sunday discussed boosting cross-Straits mutual investment and gave their advice on mainland companies investing in Taiwan.
Cross-Straits investment has been one-way, from Taiwan to the mainland in the past 20-strong years due to restrictions from Taiwan, Li Fei, deputy director with the Taiwan Studies Center of the Xiamen University, said at the ongoing 4th Cross-Straits Economic, Trade and Cultural Forum.
The one-way flow of capital was not conducive to the healthy development of cross-Straits trade and economic ties or that of the Taiwan economy, Li said, noting that the island need new investment to help ease the current difficulties of decreased investment and the rising jobless rate brought about by the global financial crisis.
He observed that under such circumstances, "mainland investment to Taiwan" has become an inevitable trend, but cautioned mainland companies to be careful in the means and fields of investment in view of the complicated factors of Taiwan's political and social environment.
The expert recommended joint capital, cooperation, purchase, merger and securities investment in terms of the investment means and service, finance and cultural sectors as the fields for mainland investors.
Wang Jiann-Chyuan, vice president of the Taiwan-based Chung Hua Institution for Economic Research, said future mutual investment could include joint research and development, like in the herbal medicine area; joint exploration, like in the oil and raw material fields; and industrial cooperation like in the cultural and creative sector, franchising and energy service sector.
Lien Wen-Jung, another expert from the institution, suggested cotton garment, steel, machine parts and optical device, which were major export products from the mainland to Taiwan, as the potential direction for mainland investment.
Li believed that mainland-Taiwan economic relations would be ever closer and more comprehensive along with the peaceful development of cross-Straits ties.
(Xinhua News Agency December 21, 2008)