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Taiwan to hold briefing on easing Chinese investments

Economics Minister Yiin Chii- ming said on June 29 that government will hold a briefing the next day to announce the easing of restrictions on Chinese...

Economics Minister Yiin Chii- ming said on June 29 that government will hold a briefing the next day to announce the easing of restrictions on Chinese...

Taiwan’s government will hold a briefing today to announce the easing of restrictions on Chinese investments on the island.

The Ministry of Economic Affairs will meet with reporters at 4 p.m. local time in Taipei, it said in a statement on its Web site Monday.

Taiwan will likely allow mainland investment in a total of 99 industries in the first stage, Economics Minister Yiin Chii- ming (尹啟銘) said in May. Tensions between China and Taiwan, separated by a civil war 60 years ago, have eased since the island’s President Ma Ying-jeou (馬英九) took office a year ago and abandoned his predecessor’s pro-independence stance.

“The likely beneficiaries will be commercial property developers, since once Chinese companies set up offices or branches here, they are going to need space for offices or factories,” said Jacky Lu, who helps manage $200 million in funds at Allianz Global Investors Taiwan Ltd. in Taipei. “The job market may also improve.”

Taiwan’s jobless rate climbed to a record 5.84 percent in May, the government said last week.

The two sides agreed to double weekly flights and lift restrictions on investment in banks as relations have thawed. China Mobile Ltd. said it plans to buy a 12 percent stake in Taiwan’s Far EasTone Telecommunications Co. on April 29, sending the Taiex index up 6.7 percent the following day.

Taiwan may also allow residency for investors from mainland China and elsewhere to attract more funds to the island and support the economy, the financial regulator said on May 7.

Taiwan’s economy contracted by an unprecedented 10.24 percent in the first quarter as exports fell and consumers and businesses cut spending. Exports, which account for about 70 percent of Taiwan’s gross domestic product, fell for an eighth straight month in May as demand from China and the U.S. dropped.


Updated : 2021-07-26 13:53 GMT+08:00