US-based computer giant Hewlett-Packard Co launched services yesterday to help fill the gap in trade links between Taiwan and China, a sign that mltinationals have decided to take the initiative in building a bridge based on commerce between the two sides.
With polictical differences paralyszing the government's efforts to facilitate trade, corporations are searching for solutions.
H-P said its information technology hardware and services would ensure the smooth transfer of computer files, billing and shipping information and other necessary data between companies in Taiwan and China.
The company cited its business expertise in Taiwan and China as the top reason their services should be used by more Taiwanese firms.
H-P's China operations took in revenues of US$1.2 billion and purchasing orders worth US$3.5 billion for the fiscal year running from November last year through last month. The company's business in China has grown an average of 25 percent per year for the past five years and it expects that to continue for the next several years, according to Sun Chen-Yao (孫振耀), president of H-P China.
The company brought together its Taiwan office -- which was established in 1970 -- with its China office, a 16-year old venture, to come up with a plan for companies that want to do business across the Taiwan Strait. H-P said its services can help companies keep better track of business information.
Indirect trade between the two countries has flourished. Last year, nearly a fifth of the goods exported from Taiwan went to China as trade grew 21 percent year on year to US$31.25 billion, according to the Mainland Affairs Council, which governs all cross-strait exchanges for Taiwan. This makes China an important trading partner for the nation.
It is also the preferred investment destination for Taiwanese companies. Manufacturers from Taiwan are believed to have invested over US$70 billion in China on everything from shoe and textile factories to computer production lines. H-P is not the first company to come up with products or services to improve trade between China and Taiwan. Other companies have also warned that Taiwan may be missing the boat by not fully capitalizing on China's booming economy.
Earlier this year, a Dell Computer Corp executive cited the lack of direct shipping between Taiwan and China as the key reason the firm moved its Asia-Pacific procurement headquarters from Taipei to Hong Kong. Dell purchased US$4.5 billion in computer goods from Taiwan last year and is projected to spend as much as US$6 billion this year.
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