Chinese visitors will be able to make purchases in Taiwan with bank cards issued by the China-based China UnionPay Co (中國銀聯) beginning tomorrow, a move that aimed to boost spending by Chinese tourists, the Taipei-based National Credit Card Center (NCCC, 聯合信用卡處理中心) said yesterday.
The decision will allow Chinese visitors to make purchases using China UnionPay bank cards instead of cash, NCCC president Felix Ong (翁光輝) said.
At present, Chinese tourists are limited to bringing 20,000 yuan (US$2,900) in cash per visit.
China and Taiwan are scheduled to make a joint announcement of the decision tomorrow at the National Palace Museum — one year after Taiwan relaxed restrictions on visits by tourists from China.
China UnionPay is China’s only national electronic payment network, an umbrella network that covers more than 80 banking institutions.
As the dominant player in China’s bank card industry, it has more than 1.8 billion cards in circulation.
The cards are accepted in 61 countries and regions outside China.
Earlier in the day, a China UnionPay delegation led by the company’s president, Xu Luode (�?w), arrived in Taipei to announce the decision, made possible by the acquiescence of the Taiwanese authorities.
Speaking on his second visit to Taiwan, Xu hailed Taiwan’s decision to accept the use of bank cards issued by China UnionPay.
“It will not only significantly help increase business volume on both sides but will also mark a milestone in two-way financial cooperation and facilitate Chinese visitors’ spending in Taiwan,” he said.
His delegation members included executives from major Chinese banking institutions such as the Industrial and Commercial Bank of China (中國工商銀行), the Agricultural Bank of China (中國農業銀行), Bank of China (中國銀行), China Construction Bank (中國建設銀行) and Bank of Communications (交通銀行).
Officials from the Taiwan-based Chinatrust Commercial Bank (中國信託銀行), Taiwan’s largest card issuer, have estimated that the spending volume of Chinese visitors is likely to hit NT$100 billion (US$3 billion) annually. They based their figures on a projected 2 million tourist arrivals from China per year with each spending an average of NT$48,000.
Government statistics show that tourist arrivals from China have totaled 380,000 since Taiwan opened its doors wider to Chinese tourists in July last year.
Daily spending by Chinese tourists averaged NT$10,000 during the first six months of the opening.
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB
CORPORATE SCANDAL: Cathay Life has invested NT$13.3 billion in Bank Mayapada since 2015, but the latest loss of NT$8.8 billion has completely written off its investment Cathay Life Insurance Co (國泰人壽) yesterday said it would recognize an investment loss of NT$8.8 billion (US$298.1 million) in Indonesia’s Bank Mayapada Internasional Tbk PT due to concerns about the lender’s operations amid a corporate scandal. The company said it would revise its earnings result for June, from a net profit of NT$6.52 billion to a net loss of NT$520 million, its first monthly loss over the past 17 months. After booking an investment loss of NT$5.2 billion in Bank Mayapada earlier this year, Cathay Life has so far recognized total investment losses of NT$14 billion in the lender, executive vice president
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported that revenue last month expanded 25 percent annually, but fell 12.8 percent month-on-month to NT$105.96 billion (US$3.59 billion). In the first seven months of this year, the chipmaker’s revenue surged 33.6 percent to NT$727.26 billion, compared with NT$544.46 billion a year earlier. TSMC has said it aims to grow its revenue by more than 20 percent this year. The company has since May 15 stopped taking new orders from Huawei Technologies Co (華為), its second-biggest customer after Apple Inc, due to the US’ restrictions on exports containing US technologies. TSMC has no plans to