Mainland Chinese firms can now invest in some of Taiwan’s key industries following further regulatory easing announced March 2 by the Ministry of Economic Affairs.
According to MOEA Minister Shih Yen-shiang, 25 manufacturing, nine public construction and eight services industries are now open to investment from across the strait.
“Investors from the other side of the strait can now hold limited stakes in local firms specializing in semiconductor manufacturing, packaging and testing, as well as panel and machinery tool production,” he said.
This is the fourth regulatory easing since June 30, 2009, bringing the number of sectors approved for mainland Chinese investment to 247. The MOEA will start accepting applications from March 7.
Shih believes the MOEA decision reflects public and private sector consensus on the issue. “Our policy follows the government’s basic principle of gradually easing restrictions on cross-strait investment,” he said.
The minister said mainland Chinese holdings will be capped at 10 percent and less than 50 percent for existing and new ventures, respectively. In addition, they will not be permitted to exercise control over the firms.
“Mainland Chinese investors must also have a long-standing presence in industry and be looking to pursue a collaborative strategy,” Shih said. “We hope that synergies stemming from such strategic alliances will help firms from both sides expand their global presence.”
MOEA statistics reveal that by the end of February, the ministry had greenlighted 120 mainland Chinese investment proposals totaling US$139 million. Some 76 new firms have been established as of November 2010, creating over 3,000 jobs for local residents.
