During the first quarter of this year, the province posted a 51 percent rise in its Taiwanese investment, to more than US$400 million.

In Dongguan alone, a city which has been transformed from farming to China's largest manufacturing center for computer hardware, investment has surged 256 percent to US$152 million.

"Ninety percent of Taiwanese firms in our province are profitable. And obvious improvements have been made in the investment environment," Tang said.

Speaking at the province's annual investment promotion fair for Taiwan investors, the vice-governor stressed that Taiwan businesses play an important role in the development of the local economy.

The two-day fair, held in Zhongshan by the provincial government, attracted more than 1,000 new potential Taiwanese investors, against a backdrop of increasingly active entreaties to Taiwan firms by other inland provinces to lure big business.

"It is true that many Taiwanese firms have moved to Jiangsu and Zhejiang provinces in East China to build new manufacturing plants. But rather than withdrawing their capital from Guangdong, they have enhanced their businesses here to set up solid development centres," said Zhang Zhendui, vice-director of the Provincial Office of Taiwan Affairs.

Distinguishing itself through a well-developed infrastructure and improved government services, Guangdong has increased its Taiwan-funded enterprises by more than 1,000 annually over the past three years.

By the end of last year, the province registered 12,680 Taiwanese companies doing US$9.6 billion worth of business a year ago, accounting for roughly one-third of total Taiwanese investment on the mainland.

(China Daily 06/04/2001)