For example, the visitors from the mainland in the first week of June signed deals to purchase over US$2.2 billion worth of Taiwan products after a four-day visit to the island.

Around 827 million dollars of products would be for July delivery, while the balance of US$1.4 billion worth of products would be for the end of this year , according to the head of the delegation, Li Shuilin.

Among the products the delegation members are interested in are: LCD (liquid crystal display) equipment, spare parts for mobile phones and computers, plastic and chemical products, textiles and handcrafts, Li said.

The delegation was organized by the Mainland Association for Cross-Strait Economic and Trade Exchanges, and consist of about 80 representatives of 35 companies, including IT and home appliance giants Lenovo, Haier, Changhong and ZTE. The business representatives/ owners held talks with more than 300 Taiwan firms in Taipei and Kaohsiung to learn more about their products and market potential in the mainland as well as how to take reciprocal advantage of their joint manufacturing capacities, according to Li.

In telecommunications, a total of 17 telecommunication service providers and 30 equipment manufacturers of the mainland were invited to attend a forum in Taipei the following week.

“We see a lot of opportunities for cooperation as the mainland is fast developing its 3G market,” said Liu Liqing, chairman of the China Association of Communications Enterprises.

Johnsee Lee, president of the Taiwan’s Industrial Technology Research Institute (ITRI), also said the discussions would help local equipment producers better understand the market potential and industrial standards in the mainland.

The delegation was the first of its kind and was warmly received on the island.

This marked a substantial step by the mainland to help boost investment in Taiwan and the purchase of Taiwan products, proposed by Chinese Premier Wen Jiabao in April, Li said.

Chinese State Council’s Taiwan Affairs Office director, Wang Yi, also said that Beijing will encourage its citizens to visit Taiwan, and estimated that more than 600,000 mainlanders will travel there for tourism this year.

Ties between Taiwan and China have improved rapidly since Taiwan President Ma Ying-jeou took office in May 2008, pledging to set aside longstanding political disputes and enhance exchanges.

Their buying spree was seen as a gesture to expand trade ties between the mainland and Taiwan aside from the aim to offset the effects of the global economic downturn.

In addition to the regular two-way air and shipping traffic agreements, the two sides reached an agreement in principle to end a ban on investment from China to Taiwan.

Taiwan plans to begin accepting applications from Chinese firms to invest in local companies in as many as 101 business sectors by early July according to an Investment Commission draft proposal.

Source : Konaxis