Taiwan companies sign Yangtze River Delta contracts

Enterprises from Taiwan and the Yangtze River Delta region signed 16 contracts on Thursday morning at a conference in Shanghai to enhance participation of Taiwan enterprises in integrated development of the region.

They include 15 programs involving a total investment of nearly 45.4 billion yuan (US$6.4 billion) and one expected to provide 50 billion yuan in loans to Taiwan companies in the region over the next two years.

Four of the programs are related to Shanghai, including one between the Shanghai Hongqiao Central Business District and the Taiwan Ruentex Group to set up the company’s mainland headquarters in the district. Another is between the government of Minhang District and Everjoy Health Group to transform the latter’s construction material company CIMIC. The government of Songjiang District and Shanghai Wafer Works will develop an R&D facility for integrated circuits. The Bank of Shanghai and the Association of Taiwan Investment Enterprises on the Mainland signed a contract to provide financial services for Taiwan enterprises in the region.

Other programs are in cities in Zhejiang, Jiangsu and Anhui provinces, covering areas ranging from energy to manufacturing and smart cities.

According to authorities in the region, the Yangtze River Delta has attracted around 50,000 Taiwan-invested enterprises, accounting for more than a third of the total on the Chinese mainland. They have invested in more than 1,800 programs this year alone with a total investment of around 90 billion yuan.

The Taiwan affairs offices in Shanghai and the three provinces also released a proposal to enhance participation of enterprises with Taiwan investment in efforts to boost integrated and high-quality development of the Yangtze River Delta.

They plan to establish a scheme to share information and unify policies to better enforce policies in favor of Taiwan invested enterprises and improve the development environment for them.

They also encourage Taiwan compatriots to take part in regional reforms in manufacturing, innovation in major scientific equipment, application of key national projects, government procurement, development of 5G technology, and investment in infrastructure construction in Belt and Road countries.

To promote integrated development of enterprises from both Taiwan and the mainland, the authorities will try to build up shared industrial, value and supply chains.

The conference follows Sunday’s issue of an outline of integrated regional development in the Yangtze River Delta by the Communist Party of China’s Central Committee.

The document highlighted targets, requirements and measures to boost development in the delta and build a regional cluster of high-quality development.

As one of China's most economically active, open and innovative regions, the Yangtze River Delta boasts strategic significance in the country's modernization and further opening-up, which makes its regional integration crucial in leading the country's high-quality development and building a modern economic system.

Tasks specified in the outline include establishing a coordinated innovative industry system, enhancing connectivity of infrastructure, strengthening environmental protection, advancing public services and building the Shanghai free trade zone under high standards.

Lee Cheng-hung, president of the Association of Taiwan Investment Enterprises on the Mainland, said the delta development strategy meant much to entrepreneurs from Taiwan as about 40 percent of those on the mainland invested in the region.

“The national strategy to administrative barriers and integrate resources in the region would reduce waste in investment and help build up better industrial chains, so we all pay close attention to it,” he said.

He added that there were opportunities for Taiwan enterprises in 5G, logistics, health, agriculture, tourism and financial service sectors where they had advantages.

“But enterprises need to fully understand the policies and make investment according their own strength,” he added.

In addition to the financial services contract, he also pointed out that the Shanghai-based SSE STAR market was also a good platform for enterprises to raise capital.