Chen Yunlin, director of the State Council Taiwan Affairs Office, and Chen Yuan, president of the State Development Bank (SDB) signed an agreement Wednesday, to offer huge bank loans to business people from China's Taiwan Province who invest in the mainland.
It makes the SDB the first mainland bank to grant loans to Taiwan investors.
Under the agreement, the mainland promises to provide Taiwan investors with credit loans totaling 30 billion yuan (US$3.9 billion), in the coming five years.
In an address at the signing ceremony, Chen Yunlin called the move a step forward for the mainland's efforts to resolve the issue of financing for Taiwan investors.
The official said that the mainland side has always noted that the Taiwan authorities have put up lots of restrictions on Taiwan investment in the mainland, and meanwhile, Taiwan investors have also been difficult to raise funds in the mainland.
In as early as the early 1990s, the mainland had allocated over30 billion yuan (US$390 million) to partly help Taiwan investors to buy fixed assets for their factories in the mainland, according to the official.
In addition, Taiwan investors are allowed to trade A-shares on mainland's stock market, he noted.
According to the official, the mainland is the largest export market and source of trade deficit for Taiwan, while Taiwan is the second largest export market for the mainland. The mainland is also the largest investment area for Taiwan, he added.
Chen Yuan also spoke at the ceremony. He pledged to join forces with the State Council Taiwan Affairs Office in financing Taiwan investors and promoting the cross-Straits economic and trade exchanges.
(Xinhua News Agency September 7, 2005)
