TSU protests easing of rules on China-bound investment

The Taiwan Solidarity Union (TSU) yesterday voiced strong opposition to the government's latest relaxation of restrictions on China-bound investment, saying it would only increase unemployment in Taiwan and speed up the relocation of the local high-tech sector to China.

The Mainland Affairs Council on Thursday announced that it was lifting bans on China-bound investment for low-end semiconductor packaging and testing as well as small-sized liquid-crystal-display (LCD) panel manufacturing.

TSU caucus whip David Huang (黃適卓) argued that the new policy violates President Chen Shui-bian's (陳水扁) "active management, effective opening" and is different from the Ministry of Economic Affairs' plan.

In response, council chairman Joseph Wu (吳釗燮) said that the government had reached a consensus on lifting restrictions for such investments in early 2004, but waited to announce the policy shift until the time was ripe.

"In fact, the Ministry of Economic Affairs has continuously discussed the opening policy over the past two years and the government has also prepared completely for the opening," Wu said.

"We think it is now the time to [lift restrictions on] low-end semiconductor packaging and testing and small-sized LCD panel manufacturing. The council and the ministry do not have ... a different pace or plan," Wu said.

Minister of Economic Affairs Morgan Hwang (黃營杉) and Vice Minister of Economic Affairs Shih Yen-hsiang (施顏祥) joined Wu at the legislature yesterday to answer TSU lawmakers' questions.

Shih said that the ministry has punished some companies who snuck into China to invest against government regulations, and will keep a close watch on companies who have violated the opening policy.

Meanwhile, Hwang dismissed rumors that the government's opening policy was specifically designed to help Toppoly Optoelectronics Corp's (統寶光電) planned acquisition of Royal Philips Electronics NV's display unit in China.

"As long as the companies meet the conditions regulated by the economics ministry, we have no reason to refuse their investment in China or find fault with them," Hwang said.