Taiwanese President Ma Ying-jeou sought to encourage foreign investment Monday, promising to turn the island into a springboard for multinational companies looking to do business with nearby China. Ma's comments came as Taiwan's stock market dropped to its lowest level in four years, amid mounting fears of global recession. Such a slowdown would have a profound impact on Taiwan, whose growth is driven by exports of high-tech goods. Ma acknowledged the challenge of the current business environment, telling 1,000 entrepreneurs from around the world that “we want to build a sound economy that will grow strongly when the time is right.” But he insisted that the commercial steps he has taken since assuming office in May can transform the island into an Asian financial and transport hub by allowing it to take full advantage of its proximity to the Chinese mainland. The steps include establishing regular direct flights across the 100-mile (160 kilometers) wide Taiwan Strait and laying the groundwork for increased investments between the sides. A key element in Ma's program allows Taiwanese companies to invest more than 40 percent of their value in Chinese companies, and eventually opening Taiwan's real estate and stock markets to Chinese institutions. “ We are steering a new course for Taiwan's economy,” Ma said. “Some of our initiatives are unprecedented.” Vice President Vincent Siew said the initiatives will enable Taiwan to attract Chinese and foreign talent as well as greater outside investment. “We will draw on mainland China's strength to enhance our industrial development ... and reposition our economy in line with international practices,” Siew said. Taiwanese have already invested more than US$100 billion on the Chinese mainland. Taiwanese officials openly encourage Chinese investment in areas such as herbal medicines, aerospace, telecommunications and automobiles.
