International Business : Rivals China, Taiwan See Rise in Trade

Trade between China and rival Taiwan surged in 1995 despite souring relations, with China reporting a trade deficit of $9.37 billion in the first 10 months of the year, New China News Agency reported Wednesday.

China exported $2.46 billion in goods to Taiwan between January and October, up 49.7% compared with the same period in 1994, the news agency said.

Imports from Taiwan climbed a year-on-year 10.5% to $11.83 billion in the first 10 months of ‘95, it said.

Trade in all of 1995 is expected to exceed $20 billion, the news agency said. The figure was up 15.7% at $14.28 billion in the first 10 months.

Relations between Beijing and Taipei, rivals since the end of the Chinese civil war in 1949, plunged last June when Taiwanese President Lee Teng-hui enraged China by making a landmark private trip to the United States.

China, which considers Taiwan a rebel province, held missile tests in the sea north of the island in July and August.

Beijing is seeking to push Taiwan into diplomatic isolation to force reunification.

Amid the tension, Taiwanese investment in China slipped slightly.

Investment by Taiwanese businesses fell 2.2% to $2.5 billion in the first nine months of 1995 compared with the year-ago period, New China News Agency said. China approved more than 3,000 Taiwanese projects in the period.

Many Taiwanese businessmen invested in China because laws were introduced in many areas to protect their investments, it said. By the end of September, China had approved more than 30,000 Taiwanese contracted investment projects worth $27.1 billion, the news agency said.

The special economic zone of Xiamen in southeast China approved 128 Taiwanese investment projects worth $275 million in the first 11 months of 1995, the news agency said.