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5 Special Report on the State of Business in South China
3. Fujian Province
Cross-Strait Trade Hub Fujian’s Major Industrial Products
National Rank (total 30 provinces/municipalities)
Directly facing Taiwan, Fujian’s coastline provides it easy
access to cross-strait trade and business. e province used to Product National Rank
be the sole hub for all air and sea transportation to Taiwan,
but several years ago the government began permitting direct Chemical Fiber 3
links with other parts of the country, following which Guang-
dong and Jiangsu surpassed Fujian in terms of attracting in- Televisions 4
vestment from Taiwan. Nonetheless, Fujian stands to gain the
most from the continuing improvement of cross-strait rela- Cloth 6
tions, both economically and in terms of its importance to the Paper
state government. e main economic engines in Fujian are
Xiamen, Fuzhou, Quanzhou, Zhangzhou and Putian. ere Hydropower 7
are also a number of less well-known economic gems hidden Microcomputer Equipment
throughout the province.
Mobile Telephone 8
Economy
Beer 9
e economies of Fujian and Taiwan are closely related
and complementary – with the pillar industries of both re- Source: China Statistical Yearbook, 2013
gions consisting of electronics, petrochemicals and machin-
ery. If this favorable economic factor can be properly utilized, these industries accounting for more than 60 percent of total
gains from the increased trade between the two regions could industrial output value.
bene t both sides amid the ongoing global economic down-
turn. In May 2013, the capital city of the province – Fuzhou A prime example of an equipment manufacturer head-
– set up an administration o ce to handle the certi cation of quartered in Fujian is Lonking Holdings, one of the largest
origin for goods made in Taiwan. construction machinery manufacturers in China (making and
distributing loaders, road rollers, excavators and forklifts). In
In June 2012, China’s State Administration of Industry late 2011, the company invested RMB3.5 billion in an exca-
and Commerce issued 16 new policies to promote the devel- vator manufacturing line in the Longyan Economic Devel-
opment of the region and strengthen its bond with Taiwan. opment Zone. e project is estimated to produce 15,000
excavators annually.
e new policies empowered local o ces to directly handle
registration applications and other business-related licenses To fuel such industry, Fujian province has taken measures
for enterprises funded with overseas capital, rather than go- to promote energy production. For example, a household
ing through the Beijing o ce, and thereby making it more waste-fuelled power plant in Fuqing city was completed and
convenient for Taiwanese enterprises to gain market access. entered operation in 2011.
Additionally, the new policies newly allowed Taiwan-funded
enterprises to use traditional Chinese characters on outdoor e provincial government focuses on attracting foreign
advertisements and register company names with Taiwanese investment in 13 industries, namely electronics and informa-
idioms. All these measures were aimed to reduce the com- tion technology, machinery, petrochemicals, steel and non-
mercial costs to Taiwan-funded enterprises and help to attract ferrous metals, shipbuilding, new energy, bio-pharmaceuticals
more large-scale companies and projects to Pingtan. (traditional Chinese medicine), logistics, new materials, con-
struction materials and textiles. Other key industries in the
Historically, Fujian’s key industries have been agriculture, province include aquaculture and sheries.
footwear and clothing, but in recent years the area has in-
creasingly focused on high-tech and electronic goods. Fujian’s Spotlight on Xiamen
industrial clusters have become stronger in electronic infor- While Fuzhou is the capital of Fujian province, the more
mation, equipment manufacturing and petrochemicals, with
southern Xiamen is one of China’s four original special
54 economic zones (along with Guangzhou province’s Shenzhen,
Zhuhai and Shantou) and a key trade hub – its port and
airport are both the third busiest in the region, behind
Guangzhou and Shenzhen.
e import and export volume connected to trade con-
ducted by foreign-invested enterprises takes up more than half
of the total volume in Xiamen, which in turn occupies more
than half of the total import and export volume of the entire
province. ese provide opportunities for service outsourcing
3. Fujian Province
Cross-Strait Trade Hub Fujian’s Major Industrial Products
National Rank (total 30 provinces/municipalities)
Directly facing Taiwan, Fujian’s coastline provides it easy
access to cross-strait trade and business. e province used to Product National Rank
be the sole hub for all air and sea transportation to Taiwan,
but several years ago the government began permitting direct Chemical Fiber 3
links with other parts of the country, following which Guang-
dong and Jiangsu surpassed Fujian in terms of attracting in- Televisions 4
vestment from Taiwan. Nonetheless, Fujian stands to gain the
most from the continuing improvement of cross-strait rela- Cloth 6
tions, both economically and in terms of its importance to the Paper
state government. e main economic engines in Fujian are
Xiamen, Fuzhou, Quanzhou, Zhangzhou and Putian. ere Hydropower 7
are also a number of less well-known economic gems hidden Microcomputer Equipment
throughout the province.
Mobile Telephone 8
Economy
Beer 9
e economies of Fujian and Taiwan are closely related
and complementary – with the pillar industries of both re- Source: China Statistical Yearbook, 2013
gions consisting of electronics, petrochemicals and machin-
ery. If this favorable economic factor can be properly utilized, these industries accounting for more than 60 percent of total
gains from the increased trade between the two regions could industrial output value.
bene t both sides amid the ongoing global economic down-
turn. In May 2013, the capital city of the province – Fuzhou A prime example of an equipment manufacturer head-
– set up an administration o ce to handle the certi cation of quartered in Fujian is Lonking Holdings, one of the largest
origin for goods made in Taiwan. construction machinery manufacturers in China (making and
distributing loaders, road rollers, excavators and forklifts). In
In June 2012, China’s State Administration of Industry late 2011, the company invested RMB3.5 billion in an exca-
and Commerce issued 16 new policies to promote the devel- vator manufacturing line in the Longyan Economic Devel-
opment of the region and strengthen its bond with Taiwan. opment Zone. e project is estimated to produce 15,000
excavators annually.
e new policies empowered local o ces to directly handle
registration applications and other business-related licenses To fuel such industry, Fujian province has taken measures
for enterprises funded with overseas capital, rather than go- to promote energy production. For example, a household
ing through the Beijing o ce, and thereby making it more waste-fuelled power plant in Fuqing city was completed and
convenient for Taiwanese enterprises to gain market access. entered operation in 2011.
Additionally, the new policies newly allowed Taiwan-funded
enterprises to use traditional Chinese characters on outdoor e provincial government focuses on attracting foreign
advertisements and register company names with Taiwanese investment in 13 industries, namely electronics and informa-
idioms. All these measures were aimed to reduce the com- tion technology, machinery, petrochemicals, steel and non-
mercial costs to Taiwan-funded enterprises and help to attract ferrous metals, shipbuilding, new energy, bio-pharmaceuticals
more large-scale companies and projects to Pingtan. (traditional Chinese medicine), logistics, new materials, con-
struction materials and textiles. Other key industries in the
Historically, Fujian’s key industries have been agriculture, province include aquaculture and sheries.
footwear and clothing, but in recent years the area has in-
creasingly focused on high-tech and electronic goods. Fujian’s Spotlight on Xiamen
industrial clusters have become stronger in electronic infor- While Fuzhou is the capital of Fujian province, the more
mation, equipment manufacturing and petrochemicals, with
southern Xiamen is one of China’s four original special
54 economic zones (along with Guangzhou province’s Shenzhen,
Zhuhai and Shantou) and a key trade hub – its port and
airport are both the third busiest in the region, behind
Guangzhou and Shenzhen.
e import and export volume connected to trade con-
ducted by foreign-invested enterprises takes up more than half
of the total volume in Xiamen, which in turn occupies more
than half of the total import and export volume of the entire
province. ese provide opportunities for service outsourcing
