Thu, Feb 17, 2011 - Page 12 News List

Nanjing firms ink purchase contracts

SHOPPING SPREE:More than 100 Chinese business representatives from Nanjing and Jiangsu Province signed deals for home appliances, fruit, vegetables and other products

By Amy Su  /  Staff Reporter

Companies from Nanjing City, China, inked US$845 million in purchase contracts with three local companies, with the biggest order secured by Acer Inc (宏碁), which will help Taiwanese firms gain market share in China.

Suning Appliance Co (蘇寧電器), one of China’s largest home appliance chain stores, signed a US$500 million agreement with Acer to buy notebook -computers and -tablet devices from the world’s No. 2 PC maker through next year.

“The deal with Suning Appliance would help Acer boost its PC market share up to 15 percent by the end of this year, from its current 10 percent,” Acer chairman Wang Jeng-tang (王振堂) said.

Wang told reporters that Acer aims to seize between 15 percent and 20 percent of the global tablet device market, without defining a timetable.

Suning Appliance said the company hoped to help Taiwanese companies get a stronger foothold in China via the deal. Last year, Suning Appliances bought US$350 million in products from Taipei-based Asustek Computer Inc (華碩電腦).

Hisap High Technology Co (宏圖三胞), another Chinese electronics channel, signed an agreement with Asustek to buy the PC maker’s products, while JiangSu Lopal Petrochemical Co (江蘇龍蟠石化) signed a purchase agreement with Formosa Petrochemical Corp (台塑石化).

They did not provide detailed amounts for the deals.

Nanjing Mayor Ji -Jianye (季建業) and more than 100 Chinese enterprise representatives from Nanjing City and Jiangsu Province also signed agreements yesterday with local firms to buy home appliances, fruit, vegetables and other products, according to a press release from the Taiwan External Trade Development Council (TAITRA, 外貿協會).

Those purchasing deals totaled US$200 million, TAITRA said.

Nanjing is set up to welcome Taiwanese financial institutions and products via the so-called Green Channel.

The Green Channel is a program developed by the Chinese government to attract imports into the country. Under the program, Taiwanese companies can enjoy preferrential treatement such as lower tariffs and faster customs clearance for goods that China imports, Ji said.

The business representatives led by Ji met with managers from several Taiwanese financial institutions, including Mega Financial Holding Co (兆豐金控) president Mckinney Tsai (蔡友才) and -SinoPac Financial Holding Co (永豐金控) chairman Ho Show-chuan (何壽川), Ji said.

Ji said that with the opening of the Green Channel, the Nanjing City Government would provide the most preferential treatment to welcome these financial institutions.

“Nanjing is glad to be the base for Taiwanese enterprises developing in the China market, offering the best locations, lower tax rates and the green channel, encouraging more Taiwan enterprises to expand or cooperate with local businesses in Nanjing,” Ji said.

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