China boosts aid, incentives to Taiwan

The Fujian Provincial Government in southeast China also offered a series of investment incentives catering especially to investors from Taiwan.

Tseng Yung-chuan, head of the KMT’s Policy Coordination Committee, revealed the results of a meeting with Chinese officials, including Chen Yun-lin, head of the Taiwan Affairs Office under Beijing’s State Council, and Chinese banking and industry representatives.

According to Tseng, the Chinese authorities agreed to the exclusive loan, in addition to another special development loan of 30 billion yuan offered last year to Taiwan businessmen with operations in China.

According to Taiwan businessmen who attended the meeting, officials from the CPC’s Central Office for Taiwan Affairs are slated to sign an accord with Chinese banking representatives this week in Beijing to ensure the loan now that both sides have decided on terms for the loans.

KMT Honorary Chairman Lien Chan led a KMT delegation to Beijing in late April to attend a historic economic forum with CPC officials. The two parties reached agreement on a wide range of issues relating to bilateral cooperation.

Separately, the Xinhua news agency based in Beijing reported yesterday that Fujian, the Chinese province with the closest proximity to Taiwan, has worked out a series of practical investment incentives to investors from Taiwan for the next five years.

Taiwan companies with production operations exceeding 10 years will continue enjoying a two-year tax-exemption starting from the year with profits. The corporate income tax will be halved for the following three years.

All high-tech companies will have the 50 percent cut in income tax extended for another three years.

Qualified enterprises conforming with China’s industrial development programs can offset income tax from the cost of procuring equipment made in China.

Certified software firms will be exempted from paying income tax for two years from the year of generating earnings.

Taiwan companies will be allowed to purchase, merge, buy shares and set up holding firms if they are interested in the transformation of state-owned enterprises in the province.

Research institutes and universities in Taiwan will also be given incentives when they set up organizations to help promote technical innovations in the province.

In addition to offering priority to meet Taiwan firms’ needs concerning land, water and power supply, Fujian has finalized a list of 10 business and industry lines as a common platform for cooperation with investors from Taiwan.

Those on the list cover the fields of computers, telecommunications, optoelectronics, integrated circuits, automobile electronics, electrical appliances, auto parts, shipbuilding, petrochemicals, metallurgy, food processing, building materials, advanced materials, biotechnology, medical products, environmental protection equipment, logistics services, banking, insurance, securities and money changing services.

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