20100507 Chinese investments in doubt

Chinese investments in doubt

CROSS-STRAIT RELATIONS: Mainland Affairs Council officials defended the lavish dinners to which Chinese trade and investment delegations have been treated

By Ko Shu-ling
STAFF REPORTER
Friday, May 07, 2010, Page 1

The Mainland Affairs Council (MAC) yesterday said it could not substantiate the veracity of investments announced by Chinese purchasing delegations, who often declare a large amount of investment during their visits to Taiwan.

MAC Deputy Minister Liu Te-shun (劉德勳) said Chinese investors must meet certain requirements stipulated by the Ministry of Economic Affairs if they wish to invest in Taiwan. The ministry has made public the information and it is available online.

According to the ministry's Web site, since the administration allowed Chinese investment on June 30 last year, 23 cases have been approved for a total of US$37.49 million. China-bound investment, however, reached US$81.3 billion as of November last year.

Regarding the amount spent by Chinese purchasing groups or visiting delegations, Liu said it was part of cross-strait exchanges and not counted as Chinese investment by the ministry.

“If delegation members make any pledges on purchases, they must face questioning if they don't honor their promise,” Liu said. “However, we are more interested in the data published by the economics ministry.”

Liu made the remarks during the weekly press conference held at the council yesterday afternoon.

China's Taiwan Affairs Office spokesman Yang Yi (楊毅) said in January that China had purchased US$14 billion in goods from Taiwan and planned to buy US$5 billion in flat panels this year.

In May last year, a purchasing group from Guangxi claimed to have spent US$180 million (NT$5.7 billion). No one was sure of the exact amount that was actually spent.

Association for Relations Across the Taiwan Strait Chairman Chen Yunlin (陳雲林) said last year that China would purchase oranges from Taiwan, but orange farmers ended up losing money selling their products to China.

As government agencies, including the quasi-official Straits Exchange Foundation, usually treat Chinese delegations to expensive meals at five-star hotels during visits, local media were curious as to how much has been spent on the Chinese guests and whether it was necessary.

Liu said the media saw only the public functions, while there were many more private functions held at less expensive restaurants.

Reporters also asked about the council's position on China's 10 cooperation proposals announced by the Fujian Provincial Government on Wednesday, including establishing a Hong Kong-Taiwan-Xiamen ferry service.

Following confusion over whether the ferry could carry motor vehicles and whether Taiwanese could take their cars to China, Liu said there was no law in place, nor was it government policy, to allow Taiwanese motorists to drive on Chinese soil.

Unless Taipei and Beijing resolved the issue, Taiwanese drivers hoping to ship their car to China and drive there would have to declare it as an export item at customs.