Taiwanese companies' investment in China rose 30 percent last month from a year earlier as companies such as Asustek Computer Inc (華碩電腦) and Quanta Computer Inc (廣達電腦) expanded their factories in the world's sixth-largest economy.
Investment increased to US$596.6 million from US$393 million in March last year, up 29.51 percent, according to statistics compiled by the Investment Commission under the Ministry of Economic Affairs.
In the first quarter, investment in China rose to US$1.292 billion from US$1.11 billion a year earlier, an increase of 16.09 percent, according to the commission.
At the same time, direct investment by overseas Chinese in Taiwan last month reached US$414.36 million, an expansion of 34.41 percent over the year-earlier level. First-quarter investment by overseas Chinese in the domestic market totaled US$768.86 million, up 28.11 percent on an annual basis.
Taiwanese investment rose to a record US$4.6 billion last year as companies shifted production to China to take advantage of wages as little as a 10th those in Taiwan and tap growing demand in cities such as Beijing and Shanghai.
Although Taiwan's investment in China rose markedly in March on a year-to-year basis, the Investment Commission has forecast that domestic businesses will slow their pace of investment in China for various reasons.
Citing a monetary tightening expected soon in China to cool off its overheated economy, a spokesman for the commission said that power shortages might also give Taiwanese investors who are mulling new investment plans in China cause for concern.
Taiwanese companies should pay special heed to the two issues when considering whether to launch new investment or funnel additional capital into China, the spokesman said.
RSS