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China purchase mission spends $1.45bn in Taiwan

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The delegation of businessmen and officials from the eastern city of Nanjing headed by city mayor Ji Jianye placed a large order with Acer, the world's second biggest PC vendor, the Taiwan External Trade Development Council said.

Under contracts signed Wednesday, Suning Appliance, China's top home appliance retail chain, plans to buy $500 million worth of computers and peripherals as well as hand-held devices from Acer over two years.

Asustek Computer has also received $300 million of orders from Hisap High Technology Corp, a leading computer retailer in China, according to the council.

The delegation arrived on Tuesday for a week-long trip and is expected to visit Taipei and other major cities such as Taichung.

Chinese companies on similar missions ordered a record $20 billion worth of goods from Taiwan in 2010, and the trade authorities expect that peak to be topped this year.

As well as providing Chinese firms an opportunity to pursue deals that make economic sense, observers say the delegations are also used to try to convince Taiwan of the benefits of closer ties with the mainland.

China still regards Taiwan part of its territory awaiting reunification, by force if necessary, even though the island has ruled itself since 1949.

But the relationship between the two has improved markedly since 2008 after the Beijing-friendly politician Ma Ying-jeou became the island's president, pledging to boost trade ties.

Since 2009, China has sent a number of purchasing missions to Taiwan, saying they helped shield the island from the full impact of the financial crisis.

Copyright AFP (Agence France-Presse), 2011