Mainland Chinese to Be Allowed to Invest in Taiwan From June

Taipei, May 13, 2009 (CENS)--Chinese investors will be able to enter the Taiwanese market starting from June, at the earliest, following the publication of the measures governing investments by mainland Chinese in Taiwan, along with the list of permitted investment items, scheduled this month, said Yiin Chii-min, economics minister yesterday (May 12).

Yiin made the statement after attending a coordination meeting of the Executive Yuan, which gave a final touch to the framework for Chinese investments in Taiwan. Attendees agreed that the opening up of Chinese investments in Taiwan will facilitate the normalization of cross-Taiwan Strait relationship, as well as the consolidation of the advantages of both sides in manufacturing process, technologies, channels, and brands, paving the way for the industries of both to tap the global market.

Twenty three service items will be opened to Chinese investors, accounting for 21% of the 113 items in the liberalization list committed by the government to the World Trade Organization (WTO). The most important items are in the category of wholesale/retail business, such as department stores and restaurants, and second-category communications businesses. Service businesses involving licenses, such as lawyers and certified public accountants, will not be opened at present, though.

Mainland Chinese will be able to invest in 65 manufacturing items, 30% of the total 212, including auto and motorcycle parts, Chinese herbal medicine, textile, rubber products, plastic products, mobile phone, stereo equipment, home appliances, and biotech. Semiconductor and flat display panel, two much coveted items for Chinese investors, will be excluded, though.

The liberalization list also includes 11 public infrastructural projects in the fields of airport, harbor, and tourist/recreational facilities, but Chinese construction firms will not be able to undertake domestic engineering projects, due to the vehement opposition of domestic counterparts, out of the fear of the strong competitiveness of Chinese firms.

An official in charge reported that Chinese institutional investors will be allowed to purchase commercial properties or residential houses, which, though, must be part of their investment projects on the island.