Service industry the future of Taiwan investment
Updated: 2012-09-24 17:29
By Wang Chao (China Daily)
Taiwan enterprisers should switch the investment focus from manufacture to the service industry in the mainland, says Qian Fu, senior consultant of Cross-Straits Common Market Foundation, on the 7th Taiwan enterpriser summit held in Huai’an, Jiangsu province.
“The mainland is undergoing a tremendous change in the economic growth pattern, and investors from Taiwan should adjust to this change,” said Qian.
He added that cultural and creative industry and service industry will be the major engines contributing to the economic growth, and therefore, enterprisers from Taiwan should pay more attention on these areas, when they are considering investing in the mainland.
According to the Cross-Straits Common Market Foundation, the output from the service industry in Taiwan contributes 75 percent to the local GDP, while in the mainland, the ratio is only 42 percent.
“So the potential in the service segment is enormous,” Qian said.
Since the reform and opening up of the mainland in the late 1970s, enterprisers from Taiwan have been granted with multiple favorable policies from the central and local governments, including tax cut and cheaper land uses.
The host city Huai’an has benefited from this annual conference as well. By the end of 2011, the city has attracted $8 billion worth of investment from more than 800 Taiwan enterprisers of all scales. Big companies include Foxconn Group, Benq Corporation, and Want Want Group.
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