The Xiamen Special Economic Zone was still a hot place in 1990 for foreign investment. A total of 262 contracts, three folds more than in 1989, with a direct foreign investment of $72.73 million, were approved during the year. Of the 980 foreign invested projects set up since the establishment of the zone, 506 had begun operation by the end of 1990.

Of these projects, enterprises engaged in agriculture, industry, construction, transportation and communication made up 93 percent. Last year, output value of the foreign-funded industrial enterprises was 3.65 billion yuan (calculated in accordance with the constant prices), a five-time increase over 1989 and some 56 percent of the city's total industrial output value. Their proportion of the city's export value reached 86 percent. The taxes and profits of 15 foreign-owned enterprises exceeded 1 million yuan.

The Taiwan-invested projects numbered 401, or 16 percent of the total investment projects undertaken by Taiwan businessmen in the mainland. The investment volume made up 55 percent of the total Taiwan investment in the mainland and accounted for 46.6 percent of the total foreign investment in Xiamen.

Statistics indicate that the output value of 180 Taiwan-funded enterprises put into operation last year reached 1.5 billion yuan and accounted for 23 percent of the city's total industrial output. These enterprises employ nearly 40,000 workers and staff members and manufacture such products as silicone rubber products, computer high-frequency converters, solar lamps and engaged in electronic printing. The manufacturing technology has reached a high level and the export rate passed 80 percent.

The economic returns of the Taiwan-funded enterprises in Xiamen are generally good. An investigation of 26 Taiwan-funded productive enterprises last year indicates that most enterprises increased their funds by some 148 percent over the initial investment volume.

Currently, Taiwan businessmen in Xiamen are expanding their investment and will shift from short-term to long-term plans, from individual to group investment and from labour intensive to technology intensive industries.