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Taiwan's Mainland-bound Investment Falls in January-February
Taiwan's mainland-bound investment fell 37.44 percent in the first two months of the year to US$277.32 million from a year earlier, official data showed on March 19.

The decline reflected the fact that those who were interested in the mainland market must have already undertaken their investments ahead of China's World Trade Organization entry in December, Taiwan's investment commission said.

The data showed more than half of Taiwanese investors chose East China's Jiangsu Province as their investment destination.

Nearly half of mainland-bound investment in the two months was in the electronics and electrical appliances sector at US$133.02 million, down 32.7 percent year-on-year, the data showed.

Taiwan's 'central bank' governor Perng Fai-nan said on March 18 that local businesses have poured more than US$50 billion into the mainland since the local government allowed indirect investment in the mainland in late 1980s.

But unofficial estimates showed the figure was as much as between US$70 billion and US$100 billion.

These mainland investments have so far remitted just a limited amount of earnings back to Taiwan, Perng added.

The commission, meanwhile, has approved US$564.35 million in inbound investment during the two months, down 39.63 percent from a year earlier.

It also approved non-mainland outbound investment totalling US$498.94 million in the period, down 33.05 percent year-on-year.

(China Daily March 20, 2002)

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