The Cross-Straits Economic Cooperation Framework Agreement has significantly boosted investment by overseas Taiwanese businessmen in Taiwan, the Ministry of Economic Affairs said June 7.
“Investment from these overseas Taiwanese companies registered stunning year-on-year growth of 49 percent during the first four months of 2011,” an official with MOEA’s Department of Investment Services said.
“Following the inking of the ECFA, more enterprises are willing to invest at home thanks to closer cross-strait ties, an easing of investment regulations and better protection of intellectual property rights,” the official said.
This is the fourth year running for an increase in Taiwanese companies investing at home, the official added.
According to MOEA estimates, the total projected sum of investment by Taiwan firms could reach NT$45 billion (US$1.57 billion) by the end of this year, topping the 2010 target of NT$38 million by 18 percent. By April 30, the MOEA will have 26 major investment bills totaling NT$2.03 billion on its books, with over 70 percent dedicated to manufacturing industries.
Following the implementation of ECFA, the MOEA said it has been wooing foreign investments, especially for items listed on the early harvest list. These include tools and machinery, agricultural products and textile industries.
“This significant increase proves that MOEA efforts are paying handsome dividends,” the official said.
The early harvest list under the ECFA, which includes 539 items subject to immediate tariff and market concessions, took effect Jan. 1.
The MOEA said both sides will scrap import duties on listed items in three stages over two years, with average rates for Taiwan and mainland China falling to zero from 4.2 percent and 10.5 percent respectively.
Taiwanese products on the early harvest list are picking up greater market share in mainland China the MOEA said, reversing a downward trend beginning March 2010. These goods accounted for 12.27 percent of the mainland Chinese market, up from 11.18 percent in December 2010.
MOEA data indicates small and medium enterprises are the biggest winners so far under the ECFA with over 80 percent of approvals for Taiwan certificates of product origin issued to local SMEs.
Cross-strait trade for the first two months of this year totaled US$25.42 billion, an increase of 20.3 percent year on year.
Write to Kwangyin Liu at kwangyin.liu@mail.gio.gov.tw