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Taiwan officially opens doors to Chinese investment

Taiwan officially opens doors to Chinese investment

Taipei, June 30 (CNA) Taiwan began Tuesday to accept and handle investment projects by Chinese investors, the Ministry of Economic Affairs (MOEA) announced that same day.
The move represents a landmark in cross-Taiwan Strait relations, which had been stagnant until President Ma Ying-jeou of the Kuomintang (KMT) came to power last May.
Ma advocates stopping the hostile standoff between the two sides since the end of the civil war in China in 1949 that forced the Republic of China government to relocate to Taiwan.
The MOEA gazetted two sets of legal regulations with immediate effect governing Chinese investment plans in Taiwan and applications by Chinese businesses to open subsidiary or branch offices in Taiwan.
Under the new laws, Chinese funds cannot enter Taiwan without government permission, with Chinese capital described as including money from a Chinese company in a third country in which Chinese investors who control at least 30 percent of shares of that company or who otherwise control that company.
The laws also consider Chinese investors' purchases of at least 10 percent of stocks of a listed company in Taiwan as "direct investment." In addition, the laws ban funds from the Chinese military or from Chinese companies related to military purposes.
Chinese funds are not allowed to enter the monopoly industries such as water, electricity and fuel suppliers, or business sectors that play a key role in domestic economic development, financial stability and national security, according to the new regulations.
(By Elizabeth Hsu)




Updated : 2021-06-23 20:53 GMT+08:00