Taipei, Sept. 10, 2012 (CENS)--In the fourth-round relaxation for restrictions on Chinese investments in Taiwan, the government may allow Chinese investments in hotels and sports facilities and remove the investment ceiling forbidding Chinese investors to own controlling stakes in seven key industries, including FPD (flat panel display) and semiconductor.
Since June 2009, the Ministry of Economic Affairs (MOEA) has carried out three rounds of liberalization for mainland Chinese investments. Presently, 204 manufacturing items have been opened up to mainland Chinese investments, for a share of 97% and mainland Chinese investors are allowed to invest in 161 service items, for a share of 51%, as well as 43 public-construction items, for a share of 51%.
The MOEA began to study the fourth round of liberalization for mainland Chinese investments in July. The highlight of the liberalization will be the lifting of the 50% maximum stake owned by mainland investors in the seven key industries, although the MOEA will retain the mechanism for screening investment applications for the seven key industries on a case-by-case basis.
The seven key industries are semiconductor, IC assembly, FPD (flat-panel display) and components, metal-cutting tools, electronic and semiconductor manufacturing equipment, LED (light emitting diode), and solar cell. The MOEA plans to lift the restrictions for first five industries before extending the liberalization to the last two items later on.
For public construction items, the Public Construction Commission has decided to permit Chinese mainlanders to invest in hotels and sports facilities. Other items under consideration include desalination, medical care park, agricultural technological park, and agricultural infrastructure.
Taipei city government plans to solicit investment in a multi-purchase realty project in Xinyi planned district, containing such facilities as parking lot, hotel, and department store, via BOT (build-operate-transfer) method. A number of mainland Chinese investors have expressed interest in the project. The city government has suggested relaxing restriction on mainland Chinese investments in realty and leasing.
Meanwhile, the Ministry of Interior has suggested allowing mainland Chinese investments in the construction industry for a maximum 10% stake, as well as realty brokerage. In addition, mainland Chinese investments in service businesses related to public constructions have also been put on the list for priority liberalization.
