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Manufacturers rank Chinese cities

"Xiaoshan stands out for its internationalized level of infrastructure, appropriate environment standards and customs efficiency."

Chen Lee-in, a research fellow at the Chung-hua Institution for Economic Research

Xiaoshan, Qingdao, Zhangzhou, Ningbo and Zhongshan top a 62-city list this year as the most attractive destinations in China for Taiwanese investments, according to a survey released yesterday.

"Xiaoshan stands out for its internationalized level of infrastructure, appropriate environment standards and customs efficiency," said Chen Lee-in (陳麗瑛), a research fellow at the Chung-hua Institution for Economic Research, at a press conference yesterday to present the survey by the Taiwan Electrical & Electronics Manufacturers Association (TEEMA, 電電公會).

The association questioned some 2,000 Taiwanese business-people for the survey.

According to the survey, the riskiest investment locations in China are Foushan in Quanzhou Province, Dongguan in Guangdong Province, Wenzhou in Zhejiang Province and and Taizhou in Jiangsu Province.

Foushan's living standards cost it points in the wake of the SARS epidemic since most respondents showed were unhappy with the city's food hygiene and sewage system, Chen said.

Suzhou was rated the best place to invest for two consecutive years, 2001 and last year, but it placed seventh this year.

Chen, however, said that Suzhou remains a very competitive place to invest even though other cities appeared to have surpassed it.

It appears that manufactures are not the only ones coveting the greater China market, Chen said.

"China-base Taiwanese busi-nesses have gradually shifted their focus from the China's manufacturing sector to its service sector," Chen said, adding several Taiwan-ese businesses in China have reported annual sales of more than US$100 million.

Most Taiwanese businesspeople polled for the survey also expressed satisfaction with China's improving dispute-resolution capabilities.

"The risk of having disputes scares away businesses," said Yeh Yee-wei (葉益位), chairman of Inventec Corp (英業達), at yesterday's press conference.

Vice Legislative Speaker Chiang Ping-kun (江丙坤) also spoke at the event and said China presents both challenges and opportunities to Taiwanese businesses, which seek to lower risks while pursuing bigger profits there.

Chiang also lauded President Chen Shui-bian's (陳水扁) recent announcement to activate cross-strait indirect transport links by allowing domestic airlines to operate charter cargo flights to Shang-hai for a year, beginning later this month.

"Such links may help alleviate China fever since many China-bound investors don't necessarily have to base themselves there anymore," Chiang said.

TEEMA chairman Rock Hsu (許勝雄) said that the indirect links will greatly facilitate business needs to ship products out to customers within two days.

But he also expressed concern that Shanghai may be overwhelmed with too much cargo as businesses rush to take advantage of the indirect links and that may end up causing shipment delays.

Hsu urged the government to allow charter cargo flights to other Chinese cities as well. He also said he hope the customs offices in Shanghai are capable of handling the increase in traffic.
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