Abstracts » Business, international

Mystery surrounds construction of power plant in China

Article Abstract:

The ownership of a power plant being constructed in Fujian, China, is raising political issues between Taiwan and China. The power plant, which cost $3.2 bil, is reportedly owned by Taiwan-based Formosa Plastics Group. The company denies the allegation, stating that it is complying with Taiwan's restraint on investments in China. The power plant's ownership could mean success for China's tactic of keeping silent to encourage investment from Taiwan, and could jeopardize Taiwan's influence over China.

Heavy construction, not elsewhere classified, Manufacturing and Industrial Building Construction, Electric Generating Plant Constr, Investments, Electric power plants, Power plants, Electric power plant construction, Formosa Plastics Corp. (Taiwan)

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China's large and growing market has a certain appeal

Article Abstract:

China's huge market and sustained growth are attracting Taiwanese companies amid the devalued currencies of other Southeast Asian countries. The Taiwanese firms have already spent roughly $35 bil in investments in China since 1988. The political rivalry between the two countries apparently have taken a back seat in favor of continued investments. Economists claim any economic decline in China, which can happen if China lets the yuan fall in 1998, would devastate Taiwan's economy as well.

Multinational Corporations, Foreign investments, Economic aspects, International business enterprises

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