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.
MAKING WAVES: China’s maritime militia could become a nontraditional threat in war, clogging up shipping lanes to prevent US or Japanese intervention, a report said About 1,900 Chinese ships flying flags of convenience and fishing vessels that participated in China’s military exercises around Taiwan last month and in January last year have been listed for monitoring, Coast Guard Administration (CGA) Deputy Director-General Hsieh Ching-chin (謝慶欽) said yesterday. Following amendments to the Commercial Port Act (商港法) and the Law of Ships (船舶法) last month, the CGA can designate possible berthing areas or deny ports of call for vessels suspected of loitering around areas where undersea cables can be accessed, Oceans Affairs Council Minister Kuan Bi-ling (管碧玲) said. The list of suspected ships, originally 300, had risen to about
DAREDEVIL: Honnold said it had always been a dream of his to climb Taipei 101, while a Netflix producer said the skyscraper was ‘a real icon of this country’ US climber Alex Honnold yesterday took on Taiwan’s tallest building, becoming the first person to scale Taipei 101 without a rope, harness or safety net. Hundreds of spectators gathered at the base of the 101-story skyscraper to watch Honnold, 40, embark on his daredevil feat, which was also broadcast live on Netflix. Dressed in a red T-shirt and yellow custom-made climbing shoes, Honnold swiftly moved up the southeast face of the glass and steel building. At one point, he stepped onto a platform midway up to wave down at fans and onlookers who were taking photos. People watching from inside
Japan’s strategic alliance with the US would collapse if Tokyo were to turn away from a conflict in Taiwan, Japanese Prime Minister Sanae Takaichi said yesterday, but distanced herself from previous comments that suggested a possible military response in such an event. Takaichi expressed her latest views on a nationally broadcast TV program late on Monday, where an opposition party leader criticized her for igniting tensions with China with the earlier remarks. Ties between Japan and China have sunk to the worst level in years after Takaichi said in November that a hypothetical Chinese attack on Taiwan could bring about a Japanese
STREAMLINED: The dedicated funding would allow the US to transfer equipment to Taiwan when needed and order upgraded replacements for stockpiles, a source said The US House of Representatives on Thursday passed a defense appropriations bill totaling US$838.7 billion, of which US$1 billion is to be allocated to reinforcing security cooperation with Taiwan and US$150 million to replace defense articles provided to the nation. These are part of the Consolidated Appropriation Act, which the US House yesterday passed with 341 votes in favor and 88 against. The act must be passed by the US Senate before Friday next week to avoid another government shutdown. The US House Committee on Appropriations on Monday unveiled the act, saying that it allocates US$1 billion for the Taiwan Security Cooperation Initiative
RSS