The Ministry of Economic Affairs (MOEA) yesterday said it is targeting 10 percent growth in Taiwan-bound investments from China for next year as the Economic Cooperation Framework Agreement (ECFA), in which tariffs on certain goods are to be reduced, takes effect next month.
“We are setting reasonable targets for Taiwan-bound investments next year ... and these targets will be adjusted accordingly over the course of the year,” Minister of Economic Affairs Shih Yen-shiang (施顏祥) told a year-end press conference.
The inbound investments include those of Chinese and overseas Taiwanese firms as well as foreign direct investments (FDI).
In June last year, Taiwan lifted the ban on Chinese companies investing in manufacturing, services and public construction. The move marked the first time that Taiwan has welcomed Chinese capital into the country.
Shih said the scheme is being re-evaluated and he declined to comment further on when and what sectors will be included in the second wave of openings.
According to the Investment Commission, aggregate Chinese investments in Taiwan from July last year to last month amounted to 93 cases and US$131.4 million.
The ministry aims to attract Chinese investments of US$120 million next year.
Vice Minister of Economic Affairs Hwang Jung-chiou (黃重球) said earlier this month that the ministry is considering allowing Chinese home electronics makers to invest in Taiwanese LCD firms, which suggests that the local LCD sector is likely to be included in the second wave of openings.
Meanwhile, the government is seeking US$7.4 billion in FDI next year, hoping that the ECFA will attract foreign investors to utilize Taiwan as a gateway to tap into the Chinese market.
Taiwan’s FDI slumped 20 percent to US$3.3 billion for the first 11 months.
The ministry also said it aims to have NT$45 billion (US$1.5 -billion) in investments from overseas-based Taiwanese firms next year.
These outbound Taiwanese firms are expected to invest more than NT$40 billion at home this year, up from the original target of NT$38 billion set by the government, the ministry said.
On a related development, Shih said the formation of an economic cooperation committee (ECC) is expected to take place “very soon.”
The establishment of an ECC is critical as it will continue to guide both Taipei and Beijing in negotiating four other unsettled agreements under the ECFA, which include investment protection, the commodities and service trades and dispute settlements.
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