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Approved China investments in Taiwan down over 50% in 10 months

Approved China investments in Taiwan down over 50% in 10 months

Taipei, Nov. 21 (CNA) Approved China investments in Taiwan for the first 10 months of this year fell by more than 50 percent year-on-year largely due to a relatively high comparison base recorded a year earlier, according to the Investment Commission.

The commission said that during the same period last year, Chinese firms got approval from Taiwanese authorities to pour more than US$60 million in property development and textile production in the local market, bringing total Chinese investments last year to about US$316 million.

As a result, in the 10-month period of this year, the amount of approved China investments in Taiwan, which totaled some US$134 million, was down 57.58 percent from a year earlier, the data showed.

The commission said that the more than 50 percent year-on-year drop in investment value from China shows the decline in Chinese investments has moderated from an approximately 80 percent year-on-year decline seen in the beginning of this year.

The agency said it expects Chinese firms will file several applications by the end of this year to seek approval to invest in Taiwan, which will boost the investment value for the entire 2015.

For example, Powertech Technology Inc. announced in late October that it has agreed to sell a 25 percent stake to China's Tsinghua Unigrou, marking the first time that a Chinese company will be investing in Taiwan's integrated circuit testing and packaging industry, if the deal is approved by the commission.

Despite the sharp decrease in investment value by Chinese investors, the number of the projects which got approval during the first 10 months of the year totaled 135, up 20.54 percent from a year earlier.

Since Taiwan lifted a ban against Chinese investors investing in the country on June 30, 2009, Chinese investments approved here have amounted to a cumulative total of US$1.33 billion, the commission said.

In the 10-month period, Taiwan's outbound investments reached almost US$9.4 billion, up 40.42 percent from a year earlier as local companies were keen to invest in financial instruments to boost the country's outbound investments, the commission said.

Among these Taiwanese investors, Taiwan Semiconductor Manufacturing Co. (TSMC) obtained a green light in July to spend US$2 billion to set up a financial investment subsidiary -- TSMC Global Ltd.-- in the British Virgin Islands.

Meanwhile, Fubon Financial Holding Co. and Cathay Financial Holding Co. have received approval to invest US$538 million and US$240 million, respectively, to establish investment holding subsidiaries overseas, according to the commission.

The value of approved Taiwanese investments in China also rose albeit at a slower pace, by 11.43 percent, from a year earlier to US$8.72 billion, while the number of approved projects filed by Taiwanese investors seeking to invest in China fell 17.61 percent from a year earlier to 276, the commission said. (By Lin Meng-ju and Frances Huang)

Updated : 2021-09-26 20:00 GMT+08:00