China plans to tighten up supervision of domestic companies looking to invest overseas, the government said, after some high-profile investments abroad turned sour amid the global economic crisis.
The Ministry of Commerce will require Chinese firms to seek its approval for overseas investment of US$100 million or more, according to draft rules published on its Web site late on Wednesday.
Companies will also need the ministry’s approval for investments in countries that have no diplomatic relations with Beijing, overseas infrastructure projects or countries and regions with high risks, it said.
Non-central government firms will need approval from provincial branches of the ministry for overseas investments of between US$10 million and US$100 million.
The same rule applies for non-central government companies looking to invest in overseas energy and mining companies and real estate development projects of any size, it added.
The new draft rules, which will replace existing rules that came into force in 2004, are aimed at “promoting and regulating overseas investments,” the ministry said.
It is soliciting public opinion on the draft rules until Jan. 20.
Under existing rules, companies directly controlled by the central government need to apply for the ministry’s approval for investments abroad while other firms only need the nod from the provincial branches.
The move came after a few domestic firms faced severe criticism at home for their investment choices after the global financial crisis led to heavy paper losses, or unrealized losses, on investments that have yet to be cashed in. These include Ping An Insurance Group (平安保險), China’s second biggest insurer, and China Investment Corp (中國投資公司), the country’s US$200 billion sovereign wealth fund.
MORE VISITORS: The Tourism Administration said that it is seeing positive prospects in its efforts to expand the tourism market in North America and Europe Taiwan has been ranked as the cheapest place in the world to travel to this year, based on a list recommended by NerdWallet. The San Francisco-based personal finance company said that Taiwan topped the list of 16 nations it chose for budget travelers because US tourists do not need visas and travelers can easily have a good meal for less than US$10. A bus ride in Taipei costs just under US$0.50, while subway rides start at US$0.60, the firm said, adding that public transportation in Taiwan is easy to navigate. The firm also called Taiwan a “food lover’s paradise,” citing inexpensive breakfast stalls
TRADE: A mandatory declaration of origin for manufactured goods bound for the US is to take effect on May 7 to block China from exploiting Taiwan’s trade channels All products manufactured in Taiwan and exported to the US must include a signed declaration of origin starting on May 7, the Bureau of Foreign Trade announced yesterday. US President Donald Trump on April 2 imposed a 32 percent tariff on imports from Taiwan, but one week later announced a 90-day pause on its implementation. However, a universal 10 percent tariff was immediately applied to most imports from around the world. On April 12, the Trump administration further exempted computers, smartphones and semiconductors from the new tariffs. In response, President William Lai’s (賴清德) administration has introduced a series of countermeasures to support affected
CROSS-STRAIT: The vast majority of Taiwanese support maintaining the ‘status quo,’ while concern is rising about Beijing’s influence operations More than eight out of 10 Taiwanese reject Beijing’s “one country, two systems” framework for cross-strait relations, according to a survey released by the Mainland Affairs Council (MAC) on Thursday. The MAC’s latest quarterly survey found that 84.4 percent of respondents opposed Beijing’s “one country, two systems” formula for handling cross-strait relations — a figure consistent with past polling. Over the past three years, opposition to the framework has remained high, ranging from a low of 83.6 percent in April 2023 to a peak of 89.6 percent in April last year. In the most recent poll, 82.5 percent also rejected China’s
PLUGGING HOLES: The amendments would bring the legislation in line with systems found in other countries such as Japan and the US, Legislator Chen Kuan-ting said Democratic Progressive Party (DPP) Legislator Chen Kuan-ting (陳冠廷) has proposed amending national security legislation amid a spate of espionage cases. Potential gaps in security vetting procedures for personnel with access to sensitive information prompted him to propose the amendments, which would introduce changes to Article 14 of the Classified National Security Information Protection Act (國家機密保護法), Chen said yesterday. The proposal, which aims to enhance interagency vetting procedures and reduce the risk of classified information leaks, would establish a comprehensive security clearance system in Taiwan, he said. The amendment would require character and loyalty checks for civil servants and intelligence personnel prior to
RSS