Profitable Opportunities in China & Taiwan

Robert Hsu, June 16, 2009

In this Issue:

Taiwan's Profitable Opportunities

If you've been reading Asia Insider for a while now, then you know that one of the biggest stories over the past year has been the improving ties between China and Taiwan. With the election of Taiwan's new president Ma Ying-jeoh, the two nations started to work more closely together.

These strengthening ties were first apparent in the second half of 2008 when direct air transportation and postal links increased. There are now daily direct flights, cargo flights and even cargo shipments between China and Taiwan.

And even more steps were taken to boost relations between the two nations in late April. Taiwan finally agreed to allow China to invest directly in the island's economy. This month, Taiwan will release a list of industries that it is opening up to Mainland Chinese investment.

Right now, there are around 40 Chinese companies, including Lenovo Group and Haier Electronics Group, that have agreed to purchase products from Taiwan, totaling about $2.2 billion. And China's leading wireless service provider, China Mobile, was granted shareholder approval today to purchase a stake in Far EasTone Telecommunications.

Along with direct investment in the economy, we've already seen indirect investment into Taiwan from China. With direct flights between the mainland and island, more Chinese are traveling to Taiwan. And a number of Chinese state-owned enterprises are expanding their businesses in Taiwan, setting up offices on the island.

As a result of these improving relationship, Taiwan's dollar has strengthened 7% since March 3, and the nation's benchmark Taiex index has jumped 36% year to date. Learn more on how you can start profiting from China and Taiwan's strengthening ties.

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