The government yesterday said it had approved China Mobile Communications Corp’s (中國移動) application to set up a subsidiary in Taiwan, making it the first Chinese telecoms firm to establish a foothold here.
China Mobile, the world’s largest mobile phone operator by number of users, plans to conduct wholesale trade of electronics materials, it said in the application filed late last year. The subsidiary, however, has yet to complete its company registration process, the Ministry of Economic Affairs said.
Local media have speculated that the Chinese firm plans to use the subsidiary to take a stake in Far EasTone Telecommunications Co (遠傳), one of Taiwan’s leading mobile phone operators.
The ministry flatly rejected the possibility, however, saying China Mobile would not be allowed to purchase a stake in Far EasTone, as the telecoms sector is off-limits to Chinese investors.
The ministry said it had not received an application from China Mobile and that if it did, it would reject the proposal.
The government opened up some sectors in its first-phase opening to Chinese investments in June last year, but telecommunications and finance were not on the list.
The ministry said it was mulling opening more sectors for the second phase, but telecommunications would likely remain barred to Chinese funds.
China Mobile said last April it hoped to invest in Far EasTone, aiming to buy a 12 percent stake for about NT$17.8 billion (US$560 million).
Far EasTone was not immediately available to comment yesterday.
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