US$3.7b loan to help Taiwan-funded firms By Su Bei (China Daily) Updated: 2005-09-08 05:39
The mainland has become Taiwan's biggest export market and largest source of
trade surplus, Chen said. It has also become the largest recipient of direct
investment from the island.
The vast number of Taiwan firms investing on the mainland need financial
support, Chen said.
However, the Taiwan authorities have imposed many restrictions on companies
and financial institutions with investment on the mainland, he said.
Taiwan-invested firms are facing a lot of financing difficulties.
"The mainland has always paid special attention to the issue," Chen said.
As early as the beginning of the 1990's, the mainland arranged more than 3
billion yuan (US$369.9 million) in special loans to fund fixed asset investment
by Taiwan firms. Some mainland banks have also provided financial support to
these firms. In 2001, the mainland opened its A-share market to Taiwan-invested
companies.
President Hu Jintao said in March that "anything beneficial to Taiwan
compatriots and conducive to the promotion of cross-Straits exchanges... we will
do it with our utmost efforts and will do it well. This is our solemn
commitment."
Chen Yuan, president of China Development Bank, said his bank has kept a
close watch on cross-Straits economic and trade exchanges, as well as
Taiwan-invested companies' development on the mainland.
"We will take advantage of our role as a policy institution to actively
support Taiwan-invested companies financially," he said.
The support will not only help solve their financial difficulties, but also
promote cross-Straits economic and trade exchanges, he said.
