■ China touts joint ventures
Taiwanese companies that intend to capitalize on the Chinese market are encouraged to take advantage of a liberalization declared last year by the Chinese authorities, which allows foreign companies conducting import or export business that has amounted to US$30 million (NT$1 billion) in the past three years to set up joint ventures in China, an official at the Bureau of Foreign Trade said Friday.
According to customs statistics, there are more than 30 local companies that are eligible to apply for the plan, Francis Liang (梁國新), deputy director-general of the bureau, said yesterday.
As for companies that are not eligible for the plan, Liang suggested that they wait for the overall market to open by the end of this year, as China has promised to liberalize various sectors for foreign investors in accordance with its commitments when it joined the World Trade Organization in 2001.
■ Insurance group takes on fraud
A crime prevention center aimed at stamping out insurance fraud was formally established Friday. The center was established with NT$40 million contributed by the Ministry of Finance, the Non-life Insurance Association and the Life Insurance Association.
The ministry said that insurance and police administrations will cooperate to prevent insurance fraud, with motor vehicle and fire insurance fraud the initial targets.
Global estimates of the amount of money stolen through insurance fraud runs to about 10 percent of all insurance premiums paid, and the ministry has estimated that domestic insurance fraud annually is about NT$30 billion.
Chen Wei-lung (陳惟龍), deputy commissioner of the Insurance Department, said that the department will promote revisions to the law to allow for stiffer punishments for insurance fraud.
Chen noted that a great number of fraud cases involve collaboration between insurers and car theft rings.
Stolen cars are sold in China and other countries in Asia for huge profits, causing great losses for the domestic insurance sector. Police made arrests in 109 such cases last year.
■ Taiwan Cellular's profits fall
Taiwan Cellular Corp (台灣大哥大), the nation's biggest mobile-phone operator, suffered a 6 percent decline in fourth- quarter profits, to NT$3.3 billion from NT$3.5 billion a year earlier. Sales rose by 0.9 percent to NT$11.4 billion from NT$11.3 billion.
Taiwan Cellular will need time to improve its profits in the domestic market, where handset subscriptions outnumber people, analysts said.
■ China Steel's profits leap
China Steel Corp (中鋼) showed a 21 percent increase in fourth-quarter profit. Net income increased to NT$9.3 billion from NT$7.7 billion a year earlier.
For all of last year, China Steel said it had net income of NT$36.9 billion, compared to NT$16.8 billion in 2002.
■ Formosa Plastics' profits rise
Formosa Plastics Corp showed a 63 percent increase in its fourth-quarter profits, helped by a gain from selling shares in an oil-refining unit and a recovery in demand for plastics chemicals. Fourth-quarter sales rose 41 percent to NT$24.7 billion.
The company's full-year profit jumped 54 percent to NT$15.2 billion, from audited profit of NT$9.90 billion in 2002.
■ NT dollar falls
The New Taiwan dollar yesterday fell against its US counterpart, declining NT$0.002 to close at NT$33.390 on the Taipei foreign exchange market.
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