• Directory of Taiwan

Technology transfers from Taiwan to China now require government approval

Transfer of IC layouts, specialized technologies subject to increased scrutiny by Taiwanese authorities

A cracked wall texture with the national flags of China and Taiwan (Getty Images image)

A cracked wall texture with the national flags of China and Taiwan (Getty Images image)

TAIPEI (Taiwan News) — Taiwan is tightening rules on cross-strait technological cooperation as it reviews potential risks brought upon by how the two sides conduct business.

An amendment will be made to a set of guidelines governing Taiwanese investment in China and technology collaboration, according to the Investment Commission of the Ministry of Economic Affairs (MOEAIC). The transfer or authorization of the use of specialized technologies and integrated circuit (IC) layouts from Taiwan to China will now need to be granted by Taiwanese authorities.

The guidelines now cover IC layouts as they are considered vital to Taiwan’s industries and warrant better management and protection, CNA cited officials as saying.

This newly introduced amendment means any attempt to export Taiwan’s specialized technologies to China will be subject to rigorous scrutiny. Competent authorities are required to review applications and determine whether or not to green-light certain technological transfers and must take multiple factors into consideration including impacts on domestic business competitiveness, intellectual property rights infringement concerns, and the country’s research and development plans.

Taiwan has mounted an initiative to overhaul regulations governing multiple facets of cross-straits relations amid heightened tensions in the Taiwan Strait.

Earlier this month, the Ministry of Education revealed plans to alter rules pertaining to Chinese investment in Taiwan. The proposal seeks to clarify the definitions of Chinese and Hong Kong investment, the latter currently regarded as “foreign,” following the imposition of the Hong Kong national security law.