Mainland's Manufacturing Hub Signs Big Deals with Taiwan

Companies from the Chinese mainland manufacturing hub of Guangdong signed deals worth 2.99 billion U.S. dollars with Taiwanese counterparts here Tuesday at the start of the Taiwan-Guangdong Week trade event.

The 31 deals involve Guangdong companies buying electronic products, raw industrial materials and farm produce from Taiwan and investing in battery- and electronic device-producing projects on the island.

The two sides are expected to reach deals worth 6.7 billion U.S. dollars during the week, said Liang Yaoguang, head of Guangdong's Foreign Trade and Economic Cooperation Department, at the opening ceremony of the trade event.

The province will purchase Taiwanese products worth 6.66 billion U.S. dollars and invest 40.86 million U.S. dollars in Taiwan, he added.

The 1,000-plus strong Guangdong delegation led by Governor Huang Huahua arrived in Taipei Monday.

Guangdong hopes to seize the businesses opportunities presented by the Economic Cooperation Framework Agreement (ECFA) signed between the two sides across the Taiwan Strait in late June, Huang said at the opening ceremony.

The provincial government will encourage Guangdong companies to invest in Taiwan while facilitating Taiwanese companies investing in Guangdong's services, financial, logistics and retailing sectors, he said.

The two sides should work together in sectors such as new energy, communications and electronic information, he added.

Guangdong would also strengthen cooperation in agriculture with Taiwan, he said.

Taiwanese business people have set up about 23,800 companies in Guangdong with a total investment of 46.9 billion U.S. dollars. Moreover, more than 200,000 Taiwanese business people are living in Guangdong.

Last year, trade between Guangdong and Taiwan totaled 38.5 billion dollars and in the first half of this year the figure reached 22.6 billion dollars.

"Taiwanese companies have played a very important role in Guangdong's economic development," Huang said.

Wu Poh-hsiung, honorary chairman of the Kuomintang (KMT), said at the opening ceremony Taiwan has very close economic connections with Guangdong.

"Lots of Taiwanese companies have invested in the province since the 1980s. Now, some of them are facing difficulties. We hope the local government can support them as they restructure," Wu said.

Huang promised to provide better services for Taiwanese companies and to help them improve the management of local employees while protecting their legal rights and interests.

The Taiwanese economy has shown signs of recovery after the global financial crisis, benefiting from the peaceful relations across the Taiwan Strait, Wu said.