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Taiwan opens door to mainland
(China Daily)
Updated: 2009-07-01 07:50
TAIPEI: Effective immediately, Taiwan will allow mainland investors to pour their capital into 100 types of its industries such as manufacturing, service and public construction, "deputy economics minister" John Deng announced yesterday. The announcement is seen as a major step forward in warming cross-Straits relations. The list of businesses newly opened to investment includes computer component manufacturers, resort hotels construction, commercial port facilities, cell phone manufactures and automobile manufacturing. Limits have not been set as to what share mainland investors may hold in the Taiwan enterprises. Deng says the level of mainland ownership will be assessed on an individual basis. Mainland capital invested in Taiwan will be subject to a review, he said. Taiwan companies receiving more than NT$80 million ($2.4 million) would be required to file an annual report with the "ministry of economic affairs". Under the new rules announced yesterday, institutional investors from the mainland will be able to buy shares in Taiwan companies up to 10 percent of the value of the listed company's outstanding shares. Mainland investors will be barred however from investing in companies in which Taiwan holds a strong market advantage. In a move to protect their trade secrets, manufacturers of communications, semiconductors, solar panels and flat panel display units will remain closed to mainland investors. In addition, mainland investment will not be opened in companies involved in the manufacture of products for traditional Chinese medicine. Mainland residents may purchase land in Taiwan for private development. But in a move aimed at preventing land speculation, limitations were set barring the resale of the land for three years. The "economics ministry" statement said if the initial stage goes well, Taiwan would open the door further to mainland investment. That could open the door in future to allow mainland companies to bid on major public works projects. Fresh mainland funds are expected to help stimulate Taiwan's economy, which shrank by a record 10.2 percent in the first quarter of 2009 from a year earlier. China Daily
(China Daily 07/01/2009 page3) |
