Chinese property tycoons set for investment visit to Taiwan

April 18, 2008
Chinese property tycoons set for investment visit to Taiwan
Leisure projects top agenda as island expects huge inflow of Chinese
tourists

(TAIPEI) A group of Chinese property tycoons will visit Taiwan next
week in what could bring the first wave of mainland investment to the
island since civil war split the two in 1949.

Authorities have approved the visit by the Chinese business group as
part of regular commercial exchanges, James Huang, a spokesman of the
Cabinet-level Mainland Affairs Council, said yesterday.

The visit comes just four weeks before Ma Ying- jeou's inauguration
as Taiwan's next president. During his campaign, Mr Ma pushed for an
expansion of trade relations with Beijing, and said some Chinese
investment should be allowed in Taiwan.

Officials said the real estate developers - set to arrive on Monday -
will look into leisure and tourism investments in anticipation of
Chinese tourists flocking to the island.

Mr Ma, elected March 22, has proposed expanding the number of Chinese
tourists allowed in a year to one million, up from 80,000 in 2007. He
has also proposed allowing direct weekend charter flights between the
mainland and Taiwan.

Both proposals were endorsed by Chinese President Hu Jintao during
his breakthrough meeting with Vice-President-elect Vincent Siew in
China's Hainan Province last weekend.

'We hope to turn the current indirect, one-way business exchanges
with the mainland into direct, two-way exchanges,' Mr Siew said early
this week.

Taiwanese have invested billions of dollars on the mainland to take
advantage of its cheap labour, but Chinese investments are banned in
Taiwan for fear it would give Beijing economic and political control
of the island - a big concern for the outgoing pro-independence
government of President Chen Shui-bian.

Taiwanese officials say the visiting tycoons include Pan Shiyi of
Soho China, Li Silian of R&F Properties, and Feng Lun of Vantone Real
Estate. The three are self-made billionaires.

The Chinese business group is scheduled to visit a planned
construction site near the international airport complex in Taoyuan
County, a commercial-leisure complex in the central city of Taichung,
and several resort areas in southern Taiwan.

'We are sure the visit by the Chinese group and subsequent
investments will give a big boost to Taiwan's property market and the
economy,' said Hsiao Chia- chi, Taichung's vice-mayor.