The Chinese mainland is replacing the United States as the favored investment destination for Taiwan businesses, with investment hitting 60 billion US dollars last year.

About one tenth of that is concentrated in the city of Kunshan, west of Shanghai, in Jiangsu province. On Monday, an investment forum opened there with the aim of attracting even more business from Taiwan.

The ribbons toast another investment harvest for the small city of Kunshan. Located to the west of Shanghai, this city of 1 million people has become a magnet for investment from outside the Mainland, especially that from Taiwan. This investment fair is expected to bring funding to some 15 new projects worth 800 million US dollars, and half of it will come from Taiwan.

Among the Taiwan business people here is Zhang Yongnan, general manager of the Mainland branch of the world's largest disk manufacturer.

"What attracts us most is the excellent geographical location of Kunshan city especially its close proximity to Shanghai. Besides this, the local government is highly efficient, and is very enthusiastic about attracting investment," commented General Manager of Kunshan HUTEK Corporation Zhang Yongnan.

Zhang Yongnan's company has been up and running for just two years, but returns have been impressive. A favorable investment environment, cheap, good quality labor as well as increasingly appealing living environment make them decide to stay. Zhang says the company plans to open its second branch in Kunshan next year.

The HUTEK Corporation is one of 1,500 or more firms currently located in Kunshan. They cover the spectrum of the IT industry and many of their home companies are among the 100 largest companies in Taiwan. These firms now form the pillars of Kunshan's economy, and local government pledges continuity in the policy that is encouraging them to stay.

"We will continue to provide quality service to businesses from Taiwan, continuing to optimize the industrial structure and increase their returns," said Zhang Guohua, Mayor of Kunshan.

The city of Kunshan attracts one tenth of the total Taiwan investment in the Chinese mainland. That's more than 10 billion US dollars in contractual volume. The amount will continue to grow as the Yantze River delta establishes itself the industrial and financial hub of the nation. All this augurs well for an ever-increasing Taiwan business presence on the mainland and for the growing interdependence of economies across the strait.