Gov't Will Accelerate Liberalization of Mainland Chinese Investments in Taiwan

Taipei, Jan. 31, 2012 (CENS)--The government will open up 90% of the manufacturing items to mainland Chinese investors, including permission for them to buy into LED firms, revealed a ranking government official yesterday (Jan. 30).

The decision is included in the third-stage plan for liberalization of mainland Chinese investments in Taiwan, whose contents were briefed at a meeting of the National Security Council of the Presidential Office yesterday.

For the service sector and public construction projects, 150 items, or 50% of the total, will be opened to mainland Chinese investments, a scale much higher than original expectation. There are 23 new liberalization items, including mass rapid transit system, light-rail system, station, bus terminal, service stations of freeways, bridges, park and green space, and cable car.

Up to now, the government has opened up 247 items to mainland Chinese investments in two stages, accounting for 42%, 42%, and 24%, respectively, in the manufacturing sector, service sector, and public construction. With President Ma Ying-jeou winning the election for his second term, the pace of the third-stage liberalization will be accelerated.

In the third stage, some 100 manufacturing items will be opened to mainland investors, including permission for them to buy into LED firms and invest in machine tools.

Some 25 service items are included in the liberation list for the third stage. The Ministry of Transportation and Communications (MOTC) suggests allowing mainlanders to invest in travel agencies only on a reciprocal basis and with some restrictions related to ownership, management, and business scope. Mainland investors, for instance, may not be able to own over 50% stake in travel agencies or more than certain number of seats on the board of directors.

Statistics of the Ministry of Economic Affairs (MOEA) show that 204 mainland Chinese enterprises have invested in Taiwan, with total investment value reaching US$175 million.