Chen invested HK$145 million ($18.86 million) to build a rubber and plastic shoe sole factory in 1997 in Quanzhou, which provides semifinished products to big shoemakers. After making decent profits from selling soles during the past decade, Chen's business was confronted with the worst financial crisis in a century. Now his company is trying to cut every unnecessary expenditure.

Because Chen imports most of his raw materials from Taiwan, each container had to pass through Hong Kong or Japan before the direct sea transportation links were set up. The journey took 11 or 12 days and cost $600 for each container to be transported.

"Thanks to the direct transportation link, I only have to spend $200 for each container in terms of transportation, and it takes only four days for the raw materials to be transported from Taiwan to the mainland,?said Chen, adding that the shorter transport time lets him move raw material supplies quicker and helps reduce the company's inventory. Chen used to store huge raw material inventories to meet delivery deadlines, because his clients tend to order goods on short notice.

"If we can get the material in just four days, we do not have to pile it up in the backyard," he said. "For one thing, a large room can be saved; for another, we needn't spend unnecessary money on raw materials that aren't selling."

Zeng Qinzhao, President of Xiamen Doowell Electron Co. Ltd., echoed Chen's words. He said it took seven or 10 days by ship for raw materials to travel from Taiwan to Xiamen in Fujian Province and three days by air.

"But now, if we have an emergency order from our clients, we can get raw materials in 24 hours by air," Zeng said.

But Zeng complained that the number of direct flights between Taiwan and the mainland is far from enough.

"Now that the direct flights have started, we have 108 flights each week from Taiwan to the mainland cities," he said. "That is too few. I suggest the flights increase to 300 each week."

Zeng said at present there are about 250 flights each week from Taiwan to Japan.

Beyond transportation

Taiwanese business people on the mainland are hoping the island and the mainland can extend their cooperation to other areas and that their economic ties can be further enhanced.

Tiao Wei-jen, Chief Representative of the Shanghai office of Taiwan's CSC International Holdings Ltd., said he is looking forward to in-depth financial cooperation with the mainland. Because CSC is a Taiwan-based financial group, so far it has not been able to provide financial services to mainland companies.

"Over 90 percent of big Taiwanese companies have investments on the mainland, and their investment profit mainly comes from the mainland," Tiao said. "They need professional financial services from an institution that they are familiar with. CSC International Holdings, as a big financial institution, is ready to offer such services, but under the current conditions we are not allowed to do that."