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Mainland offers financing aid to Taiwan firms

(Xinhua)
Updated: 2009-02-25 18:52

The Chinese mainland will offer 130 billion yuan ($19.01 billion) worth of financing support over the next three years to Taiwan-funded companies to help them tide over the economic downturn, a mainland official told reporters in Beijing on Wednesday.

Related readings:  Global downturn cuts mainland trade with Taiwan, HK  Mainland is economic lifeline for Taiwan  Taiwan firms get $19b loan lifeline

Fan Liqing, the State Council Taiwan Affairs Office spokeswoman, said the funds will be channeled through major banks, such as Industrial and Commercial Bank of China, which had extended more than 4 billion yuan in credit to more than 500 Taiwan-funded companies that operate on the mainland as of January.

The government will also hold meetings where banks and companies can discuss the financing support. The next meetings are scheduled for Friday and Saturday in Jiangsu and Guangdong provinces, respectively, Fan said.

The mainland has previously extended financial support to Taiwan-funded companies. For example, China Development Bank, one of the major banks in China, lent 22.68 billion yuan to Taiwan-funded companies from 2006 to 2008.

Regarding a cross-Straits economic collaboration pact, Fan said details would be discussed on the National People's Congress which is to open on March 5.

She also said the government had approved a plan for a visit to Taiwan by 10,000 marketing staff from Amway Corp China, which would be the biggest ever tourism group from the mainland.

The two sides were also discussing regular flights to meet the needs of increasing cross-Straits tourism, according to Fan.