President Ma Ying-Jeou Asserted The Principle

Taipei, Oct. 11, 2012 (CENS)--President Ma Ying-jeou asserted the principle of "normal opening and exceptional control" for foreign investments in Taiwan yesterday (Oct. 10), greatly lifting the restrictions on the entry of foreign capital into the Taiwanese market. Shih Yien-shiang, minister of economics, pointed out that the government will further loosen related regulations and speed up the opening for mainland Chinese investments in Taiwan. For foreign investments, the existing principle of "approval in advance" will be replaced by the principle of "post-notification" and exceptional cases needing advance approval will be kept at the minimum.

President Ma put forth the aforementioned principle during his speech for the national-day assembly. In response, Premier Sean Chen immediately asked related ministries to study how to liberalize foreign investments within the shortest time.

Shih Yien-shiang pointed out that although mainland Chinese investments still need the government's approval in advance, the government will try its best to lift the restrictions on such investments without affecting national security and interest. For instance, the MOEA will consult with related industry associations for removing the restriction for mainland Chinese investors to own control power or over 50% stake in manufacturing enterprises. In the future, the MOEA will only review mainland Chinese investment projects on a case by case basis.

Meanwhile, the MOEA is reviewing the fourth round of liberalization for mainland Chinese investments in Taiwan, which may allow Chinese mainlanders to invest in seven key industries, including FPD (flat panel display) and semiconductor.

Since June 2009, the MOEA has carried out three rounds of opening for mainland Chinese investments in Taiwan. Presently, Chinese mainlanders can invest in 204 manufacturing items, for an opening scale of 97%, 161 service items, for a scale of 51%, and 43 infrastructural items, for a scale of 51%.