Business people from Taiwan province are starting to shift the focus of their investment in the Chinese mainland to the northeastern regions.

Along with the implementation of China's strategy to rejuvenate the northeastern old industrial bases, the regions possess comparative advantages in energy supply and human resources, local economists believe.

For example, Shenyang, capital of Liaoning Province, had approved the establishment of 800-plus enterprises by the end of 2005 thanks to investment from Taiwan. The city attracted nearly $1.2 billion in contractual use of capital from Taiwan, and actually used more than $600 million.

Last year, Taiwan industrial parks, set up for the specific purpose of absorbing investment from Taiwan, were planned in Liaoning and Jilin provinces.

Construction on the park in Liaoning started in November 2005 at Tiexi District in the provincial capital, consuming a total area of two square kilometers. The first phase of the project will need an investment of 3.5 billion yuan ($431.6 million).

Meanwhile, a 10 square km Taiwan industrial park will be built in Changchun, the provincial capital of Jilin, involving a total investment of three billion yuan ($369.9 million).

Heilongjiang Province, also in northeast China, has opted to channel more investment from Taiwan into agricultural production.