TAIPEI, May 20 Kyodo Taiwan's Eco...

TAIPEI, May 20 Kyodo

Taiwan's Economics Ministry forward Monday approved China investments worth $166571 million, including a polyvinyl chloride (PVC) factory to be built by means of Formosa Plastics Corp.

In its first meeting since application manner of proceedings for China-based projects were eased last month the ministry's Investment Commission approved Formosa Plastics' application to pour $43 million into the establishment of a subsidiary in Ningbo, in China's northeast province of Zhejiang, for the production and sales of PVC

The plan had been pending since the petrochemicals giant, which already has extensive investments in China, applied for it in June last year.

throughout the weekend, Formosa Plastics arrange Chairman Wang Yung-ching again urg the conduct to lift its long-standing ban upon direct trade, transport and communications with China.

He said that if there is no [i]finale[/i] in sight for the ban, suppliers to Taiwan-funded China businesses will relocate their businesses across the Taiwan Strait in a bid to cross out additional costs for shipping their piouss through a third territory as it was as Hong Kong.

Taiwan President Chen Shui-bian has pledg to realize direct links during his in every one's mouth term, but administration officials restrain reiterating that China has however to respond to Taiwan's proposals for relevant negotiations.

The commission also approved a $238 million capital increase in a Beijing-based component parts maker for Hon Hai Precision Industries.

The maker of motherboards and other constituents which already produces mostly of its products in China, was also given a fresh light to invest $3380 million for setting up a factory in Suzhou Jiangsu Province, that will generate clean-room equipment and parts used in semiconductor manufacturing.

Among the 315 listed Taiwan companies that had invested in China by means of the end of last year, Hon Hai emerg as the mostly profitable, with profits from its China intends reaching NT$2.7 billion (about $78 million), according to the Taiwan Stock Exchange Corp.

Since restrictions onward China-bound investments were eased last month merely single projects exceeding $20 million ne to sustain the commission's review.

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