Taipei--The number of applications approved in the first five months of the year for investment in China by Taiwanese companies jumped more than 120 percent from a year earlier, the Investment Commission said Tuesday.
A total of 214 applications were approved for China-bound investment during the five month period, an increase of 120.62 percent, according to the Investment Commission's data.
Executive secretary of the commission Chang Min-pin (???) said many Taiwanese high-tech companies are willing to invest in the China market as the economy there has been showing strong growth.
In the first quarter of the year, China's gross domestic product (GDP) grew 6.9 percent from a year earlier, beating the market estimate of a 6.8 percent increase, and registering the strongest quarterly growth since the third quarter of 2015.
However, the commission's data showed that the value of approved China-bound investment by Taiwan companies dropped 24.4 percent year-on-year in the five-month period to US$2.57 billion.
This was due mainly to a relatively high comparison base as the commission gave approval early last year for contract chip maker Taiwan Semiconductor Manufacturing Co. (TSMC, ???) to invest US$1 billion in a 12-inch wafer plant in Nanjing.
This year, the commission approved 20 applications by Taiwanese firms in the five-month period to make a total investment of US$594.26 million in electronic component production in China.
The commission also approved nine applications for Taiwanese firms to invest a total US$418.35 million in the manufacture of computers and related devices and optoelectronics gadgets in China.
Eight applications were approved for a total US$364 million investment in China's financial and insurance business, while 82 applications gained a green light for US$328 million worth of investment in the wholesale and retail industry.
The total number of applications grew 120.62 percent despite the increasingly chilly political relations between Taiwan and China.
Meanwhile, in the first five months of the year, the Investment Commission approved 55 applications by Chinese companies to invest in Taiwan, a year-on-year decline of 17 percent.
The total value of the projects was US$144 million, down 6.2 percent year-on-year, the data showed.
Overall, applications by foreign companies to invest in Taiwan dropped 6.39 percent year-on-year in the five-month period to 1,260, and the total value fell 35.2 percent to US$3.31 billion, the statistics showed.
The number of applications approved for Taiwanese firms to invest overseas fell 18.55 percent in the five-month period from a year earlier to 180, while the value dropped 35.52 percent to US$4.91 billion, according to the data.
Source: Focus Taiwan News Channel