Xiamen introduces subsidies to promote cross-Strait integration

Xiamen in Fujian province has introduced 25 measures to support innovation among Taiwan-funded enterprises and attract talent from the island, aiming to deepen cross-Strait industrial integration. Subsidies of up to 10 million yuan ($1.43 million) are available for establishing joint laboratories with local institutes. The package implements a central government document guiding Fujian toward a new path for cross-Strait integration.

On Monday, Xiamen unveiled the package of 25 measures to enhance innovation capabilities of Taiwan-funded enterprises operating in the city and foster high-quality development across the Taiwan Strait. Enterprises participating in major scientific and technological projects can receive subsidies of up to 5 million yuan, with encouragement for intelligent upgrades and digital transformation. To promote scientific and industrial exchanges, Taiwan firms hosting influential industry conferences and summits in Xiamen qualify for up to 500,000 yuan in subsidies, and a cross-Strait integration and innovation award has been established.

Newly selected distinguished experts from Taiwan are eligible for living allowances of up to 1.5 million yuan, while professionals establishing enterprises in Xiamen can access startup funds of up to 5 million yuan. The measures also emphasize expanding diversified financing channels, developing Taiwan-funded investment funds, and accelerating stock market listings for these enterprises.

Xiamen is building a supportive environment for Taiwan businesses to operate and grow. By the end of 2025, the number of Taiwan-funded enterprises in the city exceeded 7,000. During the 14th Five-Year Plan period (2021-2025), newly approved Taiwan-funded projects rose by 24.6 percent, and the scale of Taiwan business investment funds surpassed 6 billion yuan in 2024.

Over the past five years, Xiamen has led nationwide in constructing cross-Strait standards-connecting platforms, established the mainland's first financial service alliance for Taiwan enterprises, and issued the country's first digital yuan bonds for cross-Strait integration. According to the proposal for Xiamen's 15th Five-Year Plan (2026-2030), priorities include accelerating cooperation in the integrated circuit sector and advancing cross-Strait digital economy integration.

Wu Chia-ying, honorary president of the Taiwan Businessmen Association in Xiamen, stated that the mainland's ongoing preferential policies and practical assistance have ensured sustained investment by Taiwan enterprises. Encouraging high-quality Taiwan firms to list on mainland stock exchanges in recent years represents a significant breakthrough, with eight Taiwan companies in Xiamen successfully listed, easing long-standing funding constraints. Wu added that over the next five years, Taiwan enterprises should deepen collaboration with mainland counterparts, integrate into mainland supply chains, and leverage policies to develop new quality productive forces and enhance global competitiveness.

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Bustling Hainan Free Trade Port seaport with customs officers clearing zero-tariff petrochemical cargo ships, symbolizing China's new free trade push.
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China launches island-wide customs operations in Hainan free trade port

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China has launched island-wide special customs operations in the Hainan Free Trade Port, allowing freer entry of overseas goods, expanded zero-tariff coverage, and more business-friendly measures. This move is widely seen as a landmark step in China's efforts to promote free trade and high-standard opening-up amid rising global protectionism. The first batch of zero-tariff petrochemical materials has cleared customs, signaling the start of a new phase.

During a recent fact-finding trip to Guangdong province, Premier Li Qiang urged the region to focus on high-quality development and keep its mission in the national strategy firmly in mind. He called for strengthening advantages in innovation-driven growth and leading in reform and opening-up. The visit underscores the urgency to advance economic and social development for a solid start to the 15th Five-Year Plan (2026-30).

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Following the December 2025 launch of island-wide special customs operations, Hainan Free Trade Port reported strong growth in foreign investment and tourism in 2025, as highlighted in the 2026 Government Work Report. Officials emphasized continued reforms to position Hainan as a key hub for China's opening-up.

China on Tuesday unveiled a comprehensive policy package leveraging fiscal and financial synergy to boost consumption and energize private investment, further igniting the domestic demand engine. Experts view this coordinated launch as focusing on stimulating private investment and promoting consumer spending, sending a positive signal through ramped-up policy support.

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Taiwan's authorities have hailed a US tariff cut to 15% as a 'home run', but opposition parties warn it risks gutting the island's semiconductor sector, while Beijing labels it an exploitative plot. The deal involves Taiwan committing up to US$500 billion in investments in the United States in exchange for the tariff reduction. Observers express concerns over the potential hollowing out of Taiwan's industrial base.

China has outlined plans to enhance infrastructure in its border regions, including completing two highways spanning its nine land-border provinces, advancing an east coast highway, and upgrading three routes into Tibet. The initiative, which details policy priorities for the rest of the decade, focuses on improving connectivity and mobility in strategic areas.

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According to Taiwan’s Tourism Administration, around 3.24 million Taiwanese visited mainland China in 2025, nearly 17 per cent more than in 2024, but still 20 per cent lower than in 2019. Taiwanese media attributes the slow post-pandemic recovery to cross-strait tensions and partial travel bans. Taiwanese leader William Lai Ching-te, who took office in 2024, has used strong rhetoric against Beijing, exacerbating the disruptions.

 

 

 

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