Taiwan gov't okays China Airlines investment in China.

TAIPEI, June 26 Kyodo

Taiwan's Economics Ministry greenlighted Tuesday 21 China-bound investments totaling $187 million, including a $3.4 million investment by the island's top commercial carrier China Airlines (CAL) in an air cargo terminal.

The investment in the terminal at the international airport in Xiamen, Fujian Province, just opposite Taiwan, will be made through the Cayman Island-registered China Airlines Asia, CAL officials said.

In a bid to grab a share of China's rapidly growing air cargo market and in preparation for the opening of direct air links between Taiwan and China, CAL is also planning to purchase a 25% stake in China Cargo Airlines from Shanghai-based China Eastern Airlines.

Companies listed on the main board of the Taiwan Stock Exchange  as well as those traded over-the-counter need the ministry's approval for China-bound investments.

Investments for a single project must not exceed $50 million.

The largest investment given the go-ahead Tuesday was by Taiwan Glass Ind. Corp., which plans to sink $35 million into the manufacturing of glass fiber for electronic devices, the ministry said.

The company will spend another $5.88 million to increase its capital in a Qingdao-based glass factory.

Highlighting the recent rush by Taiwan's high-tech companies to shift production to China, several projects by electronics makers got official blessing.

Chung Hwa Picture Tubes Ltd. will pour some $30 million into the establishment of a liquid crystal display (LCD)-monitor factory in Wujiang.

Wus Printed Circuit Co. will invest $18 million for a capital increase in its Kunshan-based subsidiary.

Giga-Byte Technology Co. will invest $15 million establishing a subsidiary producing motherboards in Ningbo.

Scanner maker Ultima Electronics Corp. will add $8 million in capital to its Jiangsu-based subsidiary.

Hon Hai Precision Industry Co. will use $7 million for capital increase in a Shenzhen-based electronics company.