Taiwan’s government is planning to allow Chinese investors to invest in 161 types of businesses in a third wave of opening the country’s markets to Chinese investment, the Ministry of Economic Affairs said yesterday.
Speaking at a legislative committee hearing, Minister of Economic Affairs Shih Yen-shiang (施顏祥) said the ministry’s proposal would allow Chinese investors to invest in 115 types of manufacturing businesses, 23 service businesses and 23 public infrastructure construction businesses.
This would allow Chinese capital to be invested in 97 percent of the business categories in Taiwan’s manufacturing sector, 51 percent of the service sector and 51 percent of the public infrastructure construction industry, Shih said.
According to the ministry, 42 percent of the business categories in both Taiwan’s manufacturing and service sectors are currently open to Chinese investment.
About 24 percent of businesses in the public infrastructure construction industry are open to Chinese capital following two rounds of liberalization in 2009 and last year, the ministry added.
In key manufacturing sectors, including flat panels, semiconductors, LEDs and solar batteries, Chinese investors are not allowed to control the management or become major stakeholders, Shih said.
Any investment plans involving Chinese investors in these key sectors, he said, will need to be examined by a task force to protect Taiwan’s key technologies.
“Regulations have become stricter, not looser, and potential investors are required to submit their strategies for industrial cooperation,” Shih added.
In the previous two waves of market opening, Taiwan allowed Chinese investment in 247 businesses in the manufacturing, service and public infrastructure sectors.
Taiwan has attracted US$272 million of Chinese investment since June 2009, when the market-opening process began, according to the ministry.
As of December last year, Taiwanese companies with Chinese capital had hired 5,189 local workers, the ministry said.