Mon, Jun 07, 2004 - Page 10 News List

CIER urges Taiwanese investors to look past China


Taiwanese businesses should not put all their overseas investments in China given Beijing's recent comments that could restrict investment and increase risk, the Chung-Hua Institution for Econo-mic Research (CIER) warned yesterday.

CIER researchers said the economic interdependence of Taiwan and China has reached an unprecedented level in recent months as a result of increased interactions between the private sectors of the two sides.

Taiwanese businesses also face ever-increasing risks in China because of Chinese authorities' sudden announcement of clamp-down policies on Taiwanese investment, CIER researchers said.

The insitute is calling for China-based Taiwanese businesspeople to hedge their investments against China's policy about-face and to consider seeking other investment locations.

The Ministry of Economic Affairs commissioned CIER to conduct a public opinion poll recently to look into investment barriers and incentives that Taiwanese investors have faced or enjoyed regarding their overseas investments.

The poll found that 75 percent of the Taiwanese companies that have made investments overseas focused their overseas business operations on the Chinese mainland (including Hong Kong), followed by Southeast Asia -- constituting about 15 percent -- and the US and other areas, in that order.

More than 70 percent of the responding companies said barriers to investing on the mainland include restrictions on fund outflows and restrictions on product distribution in China.

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