Deputy Central Bank of China (中央銀行) Governor Chen Shih-meng (陳師孟) said yesterday that he was opposed to lifting restrictions on investment in China and that opening the direct "three links" across the Taiwan Strait would have a negative impact on Taiwan industry.
In a meeting with opposition legislators, Chen said, "If international demand for our high-tech products falls off, we completely open up the direct `three links' and cast aside the `no haste, be patient'(
The direct links ban has been in place since 1949 after the Kuomintang fled from the Chinese Communists in China, while the "no haste" policy, which restricts investment in China, was promulgated by former president Lee Teng-hui (
"Taiwan investors can choose from more than 100 countries in which to invest but most choose China," Chen said. The high concentration of Taiwan companies in China poses a threat to national security, he added.
Chen, who has previously suggested levying a national security tax on China-bound investments, emphasized that he supported the "no haste, be patient" policy promulgated by Lee Teng-hui. The opposition lawmakers, who generally favor closer economic ties with China, slammed Chen, saying he was suffering from "Chinaphobia," and he should accept the mainstream view.
While the government has said recently that it would relax a US$50 million cap on investments in China on a case-by-case basis, businesses are stilled banned from investing in strategic industries such as high-end chipmaking or infrastructure projects.
However, "drastic changes" in cross-strait commercial ties may become apparent in a couple of months if both sides enter the WTO, Minister of Economic Affairs Lin Hsin-yi (
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