Formation of a local industrial cluster, scale of the cluster and maintenance of cluster mainly depend on built-up effect of the industry, that is the industry’s capacity of absorbing further investment by foreign assets, and Huai’an has a lot of advantages of establishing industrial cluster of Taiwan capital. Professor Liu Zhentao, Superintendent of Taiwan Institute of Tsinghua University who came to Huai’an and attended Huai’an Taiwan Merchant Forum, received an interview and said the above words.
Liu Zhentao thinks since several years ago, Taiwan merchants began to face problem of industrial transformation, which needs certain conditions. For example, way of maintaining supports of factors including low cost, talent, land policy, market and so on, and after evaluating such relative factors, Taiwan merchants will certainly have a choice. Huai’an has such advantages, and Taiwan merchant think highly of the advantages, so many head enterprises, basically leading enterprises in the industrial chain, come to Huai’an in succession。 In Liu Zhentao’s opinion, although many places are also carrying out "Supporting economy and trade by culture", usually they are not successful, because many "services" are not good enough, while image of Huai’an is becoming better and better in eyes of Taiwan merchants, because overall investment environment here is very good.
Liu said Huai’an has many advantages for establishing concentration highland of IT industry, and the most important investment environment contains Huai’an Municipal Party Committee and Government’s scientific plans for establishing cluster of IT industry and their honest consciousness of serving Taiwan merchants. Huai'an belongs to the same administrative zone as Southern Jiangsu, where Taiwan merchants concentrate. On the basis of studying Southern Jiangsu’s experiences of serving Taiwan merchants, Huai’an propounded a series of conceptions and effective measures of serving Taiwan merchants and wins favorable comments from the merchants; besides, Huai’an has low price of lands, low salary of labor forces and other expenses, so it has late-developing cost advantage for attracting Taiwan investment from east coastal area and Yangtze River Delta Area; furthermore, Huai’an has abundant human resources, it owns manpower environment for Taiwan IT industrial cluster. Huai’an has six general colleges and universities including Huaiyin Teachers’ College and Huaiyin Institute of Technology, as well as professional schools which cover subjects of finance and economics, electron, chemical, architecture, commerce and so on. They cultivate a number of talents each year and provide abundant human resources for developing industrial cluster; being in a same administrative zone with Southern Jiangsu, Huai’an has system advantages of undertaking industrial transformation from Southern Jiangsu and overall development of Jiangsu; and in recent years, under conception guidance of "Attracting investment by building good environment", Huai’an increases investment to improve infrastructures and satisfy demands of Taiwan merchants who invest in Huai’an.
In respect of further improving IT industrial cluster and establishing highland for Taiwan investment, Liu Zhentao suggested that leading enterprises and dominant products should be introduced further, complete industrial chain should be built and cohesiveness of IT industrial cluster should be reinforced. In the new wave of Taiwan’s investment in the mainland, Huai'an can invite merchants mainly on terminal products, cultivate professional labor forces and talent market, and by methods including preferential taxation and establishing innovation fund, encourage IT enterprises to invest in R&D and carry out technical innovation, absorb Taiwan merchants to participate in local government and politics to build and manage urban investment environment together. In respect of municipal construction and management, Kunshan Municipality actively absorbs suggestions from Taiwan merchants, its local Taiwan Merchant Association proudly calls itself as "the fifth administrative group"; propaganda strength should be increased, medias and cross-strait large scale activities can be utilized to improve popularity of Huai’an.