Taiwan Government Announced to Allow Investors From Mainland China to Buy Into Local Firms

Taiwan government has announced to allow investors from mainland China to buy into local firms in the five key manufacturing industries such as LED, FPD, semiconductor, machine tool, electronic and semiconductor manufacturing equipment, with maximum stake being set at less than 50%, up from 10% now. It is part of the third-wave opening for mainland Chinese investments in Taiwan, which was approved at an inter-ministry meeting presided by Kuan Chung-ming, minister without portfolio on March 15. The opening package will be submitted to Premier Sean Chen for ratification soon and take effect by the end of March. Additionally, mainland Chinese investments also can entry into 97% for the manufacturing sector, 54% for infrastructure, and 50% for the service sector. Mainland Chinese investors will be able to invest in such service businesses as warehousing and 25 new infrastructural items will be opened to mainland Chinese investors, which can invest in those items via BOT (build-operate-transfer) method. According to Chen Deming, China’s minister of commerce, following the signing of cross-Taiwan Strait investment protection agreement, mainland China plans to expand the investment scope in Taiwan, which will cover not only manufacturing industry but also infrastructure. The investment protection agreement is scheduled for signing in the first half this year. Source: www.ledinside.com