Companies from the Chinese mainland manufacturing hub of Guangdong signed deals worth 2.99 billion U.S. dollars with Taiwanese counterparts on August 17 at the start of the Taiwan-Guangdong Week trade event.

The 31 deals involve Guangdong companies buying electronic products, raw industrial materials and farm produce from Taiwan and investing in battery- and electronic device-producing projects on the island.

The two sides are expected to reach deals worth 6.7 billion U.S. dollars during the week, said Liang Yaoguang, head of Guangdong's Foreign Trade and Economic Cooperation Department, at the opening ceremony of the trade event.

The province will purchase Taiwanese products worth 6.66 billion U.S. dollars and invest 40.86 million U.S. dollars in three projects in Taiwan, he added.

Many Guangdong companies are interested in investing in Taiwan, Cai Yunge, deputy director of the province's Development and Reform Commission, told Xinhua.

"We hope the investment contracts reached during the week will set an example for other companies," he said.

The 1,000-plus strong Guangdong delegation led by Governor Huang Huahua arrived in Taipei Monday. Among them, there were 160 entrepreneurs from about 90 companies.

What attracts Guandong investors to Taiwan are the island's geographic location, similar language and culture, well-educated people, local partners who have the latest technologies and good management practices, Cai said.

However, since Taiwan authorities only lifted the ban on mainland investors about a year ago, mainland companies still have some concerns.

"They are not very informed about the investment environment in Taiwan and worry about how long it will take to get their investment plans approved by Taiwan authorities," Cai said. "That's why we organized such a big delegation to Taiwan."

In addition, mainland investors also expected Taiwan to open more industries and simplify the procedure for the mainlanders to get travel permits, he said.

Guangdong hopes to seize the business opportunities presented by the Economic Cooperation Framework Agreement (ECFA) signed between the two sides across the Taiwan Strait in late June, Governor Huang Huahua said at the opening ceremony.

The provincial government will encourage Guangdong companies to invest in Taiwan while facilitating Taiwanese companies investing in Guangdong's services, financial, logistics and retailing sectors, he said.

The two sides should work together in sectors such as new energy, communications and electronic information, he added.

Guangdong would also strengthen cooperation in agriculture with Taiwan, he said.

As a major event of the Taiwan-Guandong Week, the Guangdong delegation held a trade fair attracting 65 Guangdong companies and 130 Taiwan firms on Tuesday afternoon.

Li Kung-fang, general manager of Tsan Yu Yen Food Co. Ltd, was here seeking to do business with a Guangdong department store.

"I plan to set up a booth at the department store to sell my biscuits and cookies so that I can skip the trade agencies," Li said.

Since last February, he has been actively marketing in the mainland.

"I have attended several trade fairs on the mainland. At the fairs, I not only found mainland clients but also foreign ones," he said. "My company's exports have doubled in the past year. The mainland clients are the biggest."

Taiwanese business people have set up about 23,800 companies in Guangdong with a total investment of 46.9 billion U.S. dollars. Moreover, more than 200,000 Taiwanese business people are living in Guangdong.

Last year, trade between Guangdong and Taiwan totaled 38.5 billion dollars and in the first half of this year the figure reached 22.6 billion dollars.

"Taiwanese companies have played a very important role in Guangdong's economic development," Huang said.

Wu Poh-hsiung, honorary chairman of the Kuomintang (KMT), said at the opening ceremony Taiwan has very close economic connections with Guangdong.

"Lots of Taiwanese companies have invested in the province since the 1980s. Now, some of them are facing difficulties. We hope the local government can support them as they restructure," Wu said.

Huang promised to provide better services for Taiwanese companies and to help them improve the management of local employees while protecting their legal rights and interests.

The Taiwanese economy has shown signs of recovery after the global financial crisis, benefiting from the peaceful relations across the Taiwan Strait, Wu said.