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China's trade with Taiwan booms amid tensions |
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April 10, 2000
BEIJING, APR 9 (AP) - China's trade with Taiwan grew 14.5 percent last year, state media said Sunday in a report that highlighted growing economic ties despite mounting political tensions.
Trade totaled $ 23.5 billion, the Business Weekly newspaper said, citing customs figures.
Growth was driven by mainland imports from Taiwan, which expanded 17.4 percent to $ 19.5 billion, the Business Weekly said. Exports to Taiwan grew only 2.1 percent to $ 3.9 billion.
Taiwan and China have been ruled separately since a civil war that ended in 1949. Despite little progress on a political settlement, business ties have grown rapidly since Taiwan in the early 1990s dropped a ban on commerce with the mainland.
Taiwanese investment in the mainland is believed to total $ 30 billion to $ 40 billion. Factories set up to take advantage of low Chinese wages import of materials from Taiwan to make computers, appliances, shoes and other goods.
In the first two months of this year, Taiwan exports to the mainland jumped 33 percent, totaling $ 3 billion, according to the Business Weekly.
The upbeat news came just a day after Beijing unleashed a new blast at Taiwan, repeating threats to attack the island if its popularly elected government declares formal independence.
The official Xinhua News Agency called Taiwan's new vice president-elect, Annette Lu, the "scum of the Chinese nation." Lu has criticized Beijing for its military threats.
Beijing had previously said it would wait to see what President-elect Chen Shui-bian does after he takes office May 20. His Democratic Progressive Party has long wanted independence.
The pro-Beijing newspaper Wen Wei Po in Hong Kong said Saturday that China's military has moved troops and a missile unit to a coastal area facing Taiwan.
Taiwanese investment in the mainland also is growing strongly, with commitments growing 10.2 percent last year to $ 3.4 billion, the Business Weekly said. Actual investment is often much lower than such contractual commitments.
Imports from Taiwan should race ahead this year to keep pace with stronger Chinese export growth, a Chinese economist said.
"This will prompt Taiwan-invested businesses on the mainland to increase their imports of raw materials and components from Taiwan to produce more goods for the international market," the Business Weekly quoted Liu Xueqin of the China Academy of Foreign Trade and Economic Cooperation as saying.
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