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Hsieh pledges end to investment restrictions

Democratic Progressive Party (DPP) presidential candidate Frank Hsieh (謝長廷) said yesterday that if elected, he would remove the 40 percent ceiling on China investment and restrictions imposed on local banks on opening branches in China with certain conditions.

Hsieh unveiled his cross-strait policies in his new book titled Viva Taiwan (幸福台灣), published yesterday, which outlines his economic platform.

Hsieh promised to replace the China-bound investment cap of 40 percent of a local company's net worth, with a "case by case" review system.

The regulation could be readjusted in accordance with the impact of an applicant's China-bound investment on its global competitiveness, local industries and local labor market, Hsieh said.

"We should put strict restrictions on industries whose China-bound investment will make more local industries move to China or compete with local industries," Hsieh said.

"But for industries that consider their China-bound investment as a step for their advancement to the global market, the cap should be relaxed to ensure their global competitiveness," he said.

Hsieh said he would encourage local banks to establish branches in China on condition that both sides of the strait complete negotiations to establish a system for financial supervision and management so that financial supervisory agencies can exercise their right of jurisdiction.

This would ensure effective supervision and management of such branch operations, he said.

"With increasing Taiwanese investment in China, there is an enormous demand for financial services. Local banks should be allowed to seize the huge business opportunities," Hsieh said.

While advocating a more liberal and flexible approach to managing Taiwan's investment in China, Hsieh also suggested opening the country to Chinese capital.

"China's banks should be allowed to set up offices in Taiwan and then regulations should be gradually relaxed to allow Chinese banks to set up branches or sub-branches," Hsieh said.

He also proposed allowing Chinese businessmen to invest in Taiwan, with the exception of investments in residential property, agriculture and high-tech industries.

He also proposed allowing more Chinese tourists to visit Taiwan, with the ultimate aim of increasing their numbers to 3,000 a day.

Hsieh said that the so-called "92 consensus," embraced by his Chinese Nationalist Party (KMT) counterpart Ma Ying-jeou (馬英九), was not a crucial factor in breaking the cross-strait deadlock.

What both sides of the strait need is consensus about "time" and "procedure," Hsieh said.

"We should have a consensus that it might take about 10 to 20 years, or even longer, for both sides to resolve disagreements, enhance mutual understanding and reach a consensus that the solution to cross-strait relations must conform to the choice of the 23 million people of Taiwan," Hsieh said.
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