Tensions hit Fujian economy

PUBLISHED : Wednesday, 08 September, 1999, 12:00am
UPDATED : Wednesday, 08 September, 1999, 12:00am

Foreign investment in Fujian is expected to stay at last year's level, an official said yesterday.

Li Zhaoyang, a spokesman for the Fujian authorities, admitted that business had gone down since relations with Taiwan soured two months ago.

Total foreign investment rose seven per cent in the first six months after last year's slump. But the recovery was short-lived as investors stayed away when cross-strait tension increased.

Mr Li expected the total amount for 1999 would not be much less than the US$2.2 billion (HK$17 billion) recorded last year.

He played down reports that military drills had disrupted air traffic.

Such exercises were 'routine' every summer and flight delays were not unusual, he said.

Fujian Communist Party Secretary Chen Mingyi yesterday assured Taiwanese investors that their investments in the province would be safe 'regardless of what happens'.