For Taiwanese investors on the mainland it's business as usual as officials use preferential policies to lure capital from the island as the threat of war heats up. 'There won't be a war. I am not a bit scared,' said Cai Xiaoqiu yesterday. The Taiwanese businessman runs a sports company in Fuzhou city in Fujian province. Since Taiwanese President Lee Teng-hui's controversial statehood claim last month, Beijing has been staging military manoeuvres in Fujian, which faces Taiwan. But Mr Cai said he had confidence the crisis would be solved diplomatically once both governments had found a way to save face through talks. He said a provincial vice-governor in Fuzhou had visited his factory and urged him not to leave because of the tensions. 'Local officials appear more nervous than we are. They fear we might flee,' he said. Tommy Lin Hong-chang, a senior official of the Taiwan Industry and Commerce Association in Zhangzhou, also in Fujian, admitted some colleagues were frightened. 'We are somewhat scared. But the chance [that there will be a war] is extremely slim,' said Mr Lin. 'The strait tensions would not cause Taiwan investors to pull out. 'Only those who are relatively new and not familiar with the situation here may be more inclined to pull out.' Of the city's 1,400 registered Taiwan-funded firms, about 400 have regular contact with the association. An official in Jiangsu province pledged to protect Taiwanese investors and to maintain 'preferential policies', Xinhua reported.