Taiwan needs to review its restrictions on inbound Chinese investment, including visits by Chinese business executives and potential investors, the government’s top economic planner said yesterday.
Council for Economic Planning and Development (CEPD) Minister Christina Liu (劉憶如) said exports and investment are the twin engines that fuel the nation’s economic growth.
In the past, Taiwan primarily relied on its trade surplus for its economic growth, but in the first quarter of this year, domestic demand contributed about 11 percent to quarterly GDP growth of 13.27 percent, she said.
Riding on the anticipated benefits from the newly signed Economic Cooperation Framework Agreement (ECFA) with China that offers tariff exemptions on hundreds of products and easier market access across the Strait, the government is gearing up to attract investment, she said.
Special efforts should be made to remove barriers to inbound investment, which is an integral part of domestic demand, Liu said.
One of the government’s major goals in the second half of the year is to attract investment from around the world, she said, adding that legal restrictions on domestic investment should be eased or removed.
“Otherwise, our promotional drive to attract investment will be dampened,” Liu said, adding that Premier Wu Den-yih (吳敦義) had ordered a “quick fix” of the regulations on Chinese investment.
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