The implementation of direct links across the Taiwan Strait tops the wish list of Taiwanese doing business in China, a Chinese National Federation of Industries (
The survey of 267 China-based Taiwanese companies, conducted in November last year, found that Chinese markets remain a magnet to businesspeople.
As well as direct links, they also urged the government to allow Taiwanese banks to set up offices there and semi-manufactured products to be exported back to Taiwan, and to set up government offices there to address business-people's needs.
However, if direct links are enacted and restrictions on China-bound investments relaxed, 52 percent of respondents said that they would increase their China-bound investments, while only 32 percent said that they would increase domestic investments.
Respondents were positive about their prospects in China this year, with 73 percent, up from 55 percent in 2001, saying that they were likely to turn a profit by the end of the year.
According to the survey, the greatest difficulties in doing business in China were complicated customs procedures, collection of business payments and obtaining bank loans.
One year after Taiwan joined the WTO, 50 percent of the survey's respondents said that the nation's accession to the trade body had greatly helped their China-based firms to expand export markets, while 80 percent regarded their Chinese counterparts as strong competitors.
The survey, meanwhile, concluded that the dollar value of China-bound investments is gradually increasing, with 30 percent of respondents each injecting more than US$5 million into the China market -- up from 20 percent in 2001. The percentage of companies investing less than US$1 million decreased to 32 percent, from 45 percent the year before.
More Taiwanese businessmen are also seeking Chinese partners for joint ventures, with the number of collaborations increasing from 14 percent in 2001 to 30 percent last year. Ventures solely invested with Taiwanese capital decreased from 81 percent in 2001 to 65 percent last year.
"Despite rising business disputes, they need Chinese partners to help expand domestic markets there," said Tsai Hung-ming (蔡宏明), the business group's deputy secretary-general.
Another survey released by a Chinese-language newspaper yesterday also showed that the establishment of direct links with China is important to the business community, with 61.3 percent of the respondents saying the policy should be implemented to boost the economy.
The survey, conducted by the Economic Daily News early last month, polled 590 companies on the nation's economic environment in the latter half of last year.
Business leaders ranked economic reform and formulating industrial policies as their number two and three priorities, with 54.3 percent and 48.2 percent respectively.
Compared with a similar survey conducted in the first half of last year, more respondents were dissatisfied with the government's economic policies, up to 77 percent from 64 percent.
By contrast, only 10.3 percent were satisfied with the government, down from 19 percent six months ago.
The poll also showed that most companies believed the ruling party, instead of the opposition, should take responsibility for the current economic doldrums, with 45 percent saying that policy flip-flops were the major political obstacle to the nation's economic development.
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