Business and industry leaders generally welcomed the government's decision yesterday to move forward implementation of the "active opening, effective management" policy on China-bound investment.
"We are glad to hear [the news]. The decision that future investment applications exceeding US$20 million will be reviewed on a case-by-case basis, up from the current requirement of US$3 million, is good news for Taiwanese investment in China," said Lin Kun-chung (林坤鐘), chairman of the Chinese National Federation of Industries.
Lin also praised another new measure to double the ceiling on the cumulative investment allowed in China by, individual companies, to 40 percent from 20 percent of their paid-in capital or net worth.
"That will help Taiwan businessmen expand their scale of investment and increase competitiveness in China," he said.
Lin -- who will be one of a 17-member review board newly formed to draw up a revised list of banned China-bound investment categories -- said the inclusion of five business representatives on the board will help counterbalance political interests.
But Lin said the task force should meet whenever necessary, not once a year as proposed by the government. "That would be too late for the decision-makers to catch up with the pace of businesses," Lin said.
Lo Huai-chia (羅懷家), executive director of the Taiwan Electrical and Electronic Manufacturers' Association (電電公會), agreed with Lin.
"The task force should meet twice a year at least," Lo said. "And people there should make decisions less out of political considerations and more based on global thinking -- on behalf of business development."
While both Lin and Lo felt upbeat about the new measures, they said the new China-bound investment policy should better accommodate the needs of Taiwanese businesses -- such as allowing Taiwan-based banks to set up branches in China or relaxing the ban on cross-strait shipping.
"What most bothers Taiwan businesses in China is the difficulties in funding. The government should help promote capital flow between the two sides of the Strait and allow local banks to set up branches in China," Lin said.
"Besides raising the ceiling on [Taiwanese] investment in China, most businessmen want the removal of the cross-strait shipping ban to help lower their transport costs," Lo said.
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