Two venture capital companies managed by former top-ranking government officials are suspected of illegally investing in China and are expected to be fined up to NT$5 million each, officials at the Ministry of Economic Affairs said yesterday.
"The government has decided to come down hard on Taiwanese companies that have invested illegally in China," Minister of Economic Affairs Lin Yi-fu (
One of the companies on the ministry's list is Prudence Capital Co (
The company invested US$80 million in Shanghai-based Semiconductor Manufacturing International Corp (SMIC, 中芯國際集成電路), the Cabinet said in a statement on Friday.
Prudence, a Taiwan-based venture capital company funded in part by the government's Development Fund (
"Though the company [Prudence] agreed to withdraw its investment, its practice is still considered illegal given current laws and should be punished," said Huang Chin-tan (
According to regulations, Cabinet funds cannot be invested directly or indirectly in China through venture capital companies, Huang said.
Another company on the list is Global Strategic Investment Fund (
Huang said Global Strategic, which is invested in part by the ministry's Yao Hua Glass Co (
"We have submitted to the Executive Yuan a list of Taiwanese companies that have illegally invested in China," Huang said, without naming the companies suspected of breaking the law.
"We will also severely punish those investors," he added.
The ministry required Taiwanese companies to register their China-bound investments with the government. A total of 23,806 China-bound investment items worth of US$9.1 billion had been registered as of Dec. 26, the ministry said.
Today is the last day for registration and the government is formulating legislation to tighten China investment rules.
Under that plan, "companies would have to apply to the government for approval if they plan to invest in China, or they will face punishments ranging from NT$50,000 to NT$25 million," Huang said.
Under the current rules, companies suspected of breaking the law are subject to fines ranging between NT$1 million and NT$5 million.
Last Friday, the government said it would adopt stricter measures to prevent companies from illegally transferring capital to China while leaving debts unsettled at home.
LONG FLIGHT: The jets would be flown by US pilots, with Taiwanese copilots in the two-seat F-16D variant to help familiarize them with the aircraft, the source said The US is expected to fly 10 Lockheed Martin F-16C/D Block 70/72 jets to Taiwan over the coming months to fulfill a long-awaited order of 66 aircraft, a defense official said yesterday. Word that the first batch of the jets would be delivered soon was welcome news to Taiwan, which has become concerned about delays in the delivery of US arms amid rising military tensions with China. Speaking on condition of anonymity, the official said the initial tranche of the nation’s F-16s are rolling off assembly lines in the US and would be flown under their own power to Taiwan by way
‘OF COURSE A COUNTRY’: The president outlined that Taiwan has all the necessary features of a nation, including citizens, land, government and sovereignty President William Lai (賴清德) discussed the meaning of “nation” during a speech in New Taipei City last night, emphasizing that Taiwan is a country as he condemned China’s misinterpretation of UN Resolution 2758. The speech was the first in a series of 10 that Lai is scheduled to give across Taiwan. It is the responsibility of Taiwanese citizens to stand united to defend their national sovereignty, democracy, liberty, way of life and the future of the next generation, Lai said. This is the most important legacy the people of this era could pass on to future generations, he said. Lai went on to discuss
OBJECTS AT SEA: Satellites with synthetic-aperture radar could aid in the detection of small Chinese boats attempting to illegally enter Taiwan, the space agency head said Taiwan aims to send the nation’s first low Earth orbit (LEO) satellite into space in 2027, while the first Formosat-8 and Formosat-9 spacecraft are to be launched in October and 2028 respectively, the National Science and Technology Council said yesterday. The council laid out its space development plan in a report reviewed by members of the legislature’s Education and Culture Committee. Six LEO satellites would be produced in the initial phase, with the first one, the B5G-1A, scheduled to be launched in 2027, the council said in the report. Regarding the second satellite, the B5G-1B, the government plans to work with private contractors
MISSION: The Indo-Pacific region is ‘the priority theater,’ where the task of deterrence extends across the entire region, including Taiwan, the US Pacific Fleet commander said The US Navy’s “mission of deterrence” in the Indo-Pacific theater applies to Taiwan, Pacific Fleet Commander Admiral Stephen Koehler told the South China Sea Conference on Tuesday. The conference, organized by the Center for Strategic and International Studies (CSIS), is an international platform for senior officials and experts from countries with security interests in the region. “The Pacific Fleet’s mission is to deter aggression across the Western Pacific, together with our allies and partners, and to prevail in combat if necessary, Koehler said in the event’s keynote speech. “That mission of deterrence applies regionwide — including the South China Sea and Taiwan,” he
RSS