Fujian to spend 326 billion yuan on projects to boost ties with Taiwan
Mainland province earmarks 326 billion yuan for projects in various sectors in order to foster closer ties with its second-biggest investor
Fujian plans to spend 326 billion yuan (HK$406 billion) this year to boost cross-strait ties with Taiwan, but analysts are divided on whether the coastal province's heavy spending is sustainable.
Sectors to be invested in include agriculture, irrigation, transport infrastructure, energy, urban projects, environment and services.
"Three hundred billion yuan is a lot. The Chinese government wants to build up Fujian to foster closer links with Taiwan. This is partially a political move," said Tan Kok Loon, the general manager of the Marco Polo hotel in Xiamen, a port city in Fujian.
The province would increase construction of port terminals to boost passenger shipping connections with Taiwan, including links from Xiamen to Taiwanese ports such as Jinmen, Keelung and Taichung, the website said.
Tan said a new financial centre was being built in Xiamen to attract Taiwanese financial companies. About 50 to 60 per cent of the tax paid in Xiamen came from foreign investors, he said.