Wu cautions on investments in China

Vice Premier Wu Rong-i (吳榮義) has vowed to help Premier Frank Hsieh (謝長廷) improve the nation's economy and help domestic companies effectively explore the China market by offering them advice to avoid investment risks there.

Wu made the remarks Saturday at a news conference in response to concerns over investigations into United Microelectronics Corp (UMC, 聯電).

UMC, the world's second-largest contract chipmaker, was charged by prosecutors with illegally investing in a China-based wafer plant -- He Jian Technology (Suzhou) Co (和艦) -- which triggered concerns from the public and across the political spectrum.

Claiming that the UMC case is by no means a politically motivated matter, Wu urged the public not to overreact to the case and said that the government does not prevent Taiwan businesses from making money in China; on the contrary, it provides them with advice to ward off risks in the highly volatile market.

Wu urged domestic enterprises to be extremely cautious in their China investment plans and said that the government is in a position to remind them of possible risks, despite the fact that their investments are not prohibited by law.

The vice premier also encouraged Taiwan companies to diversify their investments by considering breaking into the Russian market.

Wu said that a TRA delegation visited Russia last year and did business worth US$250 million.