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New tides of Taiwan investment in Pingtan

( chinadaily.com.cn )

Updated: 2014-09-28

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Investment from Taiwanese entrepreneurs in the Pingtan Comprehensive Pilot Zone (PCPZ) has increased at a fast pace so far this year, Xinhuanet.com reported on Sept 11.

Throughout the first eight months, a total of 114 Taiwan-funded companies settled in Pingtan, growing by 1.8 times over the same period last year. The number even exceeds the increment of Taiwan-funded companies in Pingtan in the past two years.

The new registered capital by those enterprises reached more than 90 million dollars, and around 50 million dollars has been subscribed to by investors, which are a four-time and five-time growth, respectively, year on year.

On June 17, the Taiwan Commodity Market – a trading market dedicated to sales of Taiwan’s products – started operations. A favorable tax policy operates at the market, with tax exemptions on six categories of Taiwan goods: oil and grain products; farm products; textiles and garments; artwork; light industrial products and medicine.

The daily cap per person is 6,000 yuan ($960) and purchasing records are tracked. If the sum exceeds the threshold, both customers and merchants are notified to pay the tax.

The market has given a shot in the arm to Pingtan and even the whole of Fujian province in terms of attracting small and medium-sized Taiwanese businesses. Official figures show that in July alone, as many as 79 companies settled in Fujian, setting a new record for new Taiwan enterprises in the province.

For the first time on Sept 10, the market imported cargo from Taiwan via the “Mini Three Links”, a pact between Fujian and Taiwan’s Kinmen and Matsu counties that allows direct transportation of small-scale personnel and cargo.

Authorities at the market revealed that they will open more freight trips operating the “Mini Three Links” in future in order to bring down transportation costs.

Meanwhile, Pingtan is building its first cargo terminal in Jidiao Port. The No.2 and 3 berths at the port are under full-swing construction and are slated to become operational in Oct, when Pingtan will open new a sea route for direct cargo transportation with Taiwan.

The “Pingtan Closure” commenced on July 15, making Pingtan the largest area on the Chinese mainland to be under thorough customs supervision and management, with a lot of favorable policies boosting related industries from central and provincial authorities, which definitely helped to attract more investment and business from Taiwan.

Currently, two passenger ferries are operating two marine routes connecting Pingtan, Taichung and Taiwan. With a single trip of around 2.5 hours by sea, Pingtan and Taiwan are within the “one- day living circle”, which is a step closer to the construction of a “Common Homeland” Pingtan is in pursuit of.

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