Innovative Taiwan companies set up plants in Xiamen

Taiwan-based companies that are involved in advanced industries such as optoelectronics, electromechanics and biotechnology are starting to make their presence felt in Xiamen, local authorities in the city said on Tuesday.

More than 4,300 Taiwan-funded companies had established themselves in Xiamen by the end of 2014, but most were in the traditional manufacturing industries, said Xiamen Mayor Pei Jinjia.

"As a prominent part of the Fujian Free Trade Zone, Xiamen will take advantage of the FTZ status to upgrade its industries and expand cross-Straits industrial cooperation," Pei said.

Pei made the remarks during the 19th China Xiamen Machinery & Electronics Exhibition, which concludes on Wednesday.

Xiong Yanliang, deputy secretary-general of the Xiamen city government, said that the access threshold will be lowered for Taiwan-based companies in various sectors.

The city aims to cut red tape for company registrations, and offers an online platform with comprehensive information about departments that are concerned with cross-border trade, such as the industrial and commercial bureau and the tax bureau, Xiong said.

Xiamen will support cross-Straits cooperation in financing, leasing and communication services to attract more manufacturers of new products from Taiwan, including cosmetics and medical equipment, Xiong said.

With relatively low labor costs, a large talent pool and a background in innovative policies, the city is an ideal destination for Taiwan investors aiming to transfer industrial expertise into the Chinese mainland, said Li Rongmin, vice-president of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products.

"While Fujian-based construction machinery companies lead the pack in terms of producing heavy equipment, Taiwan-based companies do a better job in making electrical equipment such as sensors and cameras," Li said.

"It will be a win-win situation for companies from both sides, with Taiwan's new and competitive industries including electromechanics entering the mainland market," Li said.