The government's "no haste, be patient" policy on China-bound investment is mainly aimed at encouraging Taiwan enterprises to keep their business roots at home, a senior policy planner for cross-strait policy said yesterday.
Mainland Affairs Council (MAC) Chairwoman Tsai Ing-wen (
"The most important spirit of the `no haste' policy is to make our entrepreneurs keep their business roots in Taiwan," Tsai stressed.
She went on to say that Taiwan's government is reviewing the policy with the aim of giving local businesses greater freedom in deciding whether to launch investment projects in China.
According to Tsai, Taiwan's investment policy for China will be eased step by step.
"Local entrepreneurs need not feel disappointed if the initial relaxation of restrictions on mainland investment is not very large," she said, adding that there will be follow-up adjustment measures announced later.
While easing restrictions on the kinds of business to be allowed for Taiwanese investment in China, Tsai said, the government hopes to simultaneously develop a system that will allow Taiwanese capital to flow home, to protect Taiwan from a capital drain.
"To reach this goal, we must create a favorable economic climate that will make it attractive for Taiwanese investors on the mainland to willingly remit their capital gains back to Taiwan, " Tsai said.
The "no haste, be patient" policy was first adopted by the previous KMT government in 1996 to cool a prevailing China investment fever.
Economics Minister Lin Hsin-yi (
Tsai said an inter-ministerial task force composed of officials from the MAC, MOEA and other relevant government agencies, has almost completed its review of the "no haste" policy.
"What we are mulling is the speed and scope of the liberalization of mainland China-bound investment," Tsai said.
Meanwhile, Vice Economics Minister Chen Ruey-long (陳瑞隆) said six kinds of technology products, including semiconductors, wireless communications products and high-end personal computers, will be opened for Taiwanese investment in China under the adjusted policy. The six items are currently on an off-limits list.
Chen said the revised policy will basically offer greater freedom for local companies to decide the items they plan to produce in China, while imposing harsher restrictions on capital management.
"We hope local companies can develop capital risk management systems while launching investment projects across the Taiwan Strait," he added.
MOEA sources said that investment in production of 189 high-tech products, including DRAM (dynamic random access memory chips) and SRAM (static random access memory chips), will still be banned under the revised policy.
During the meeting with the New Party Tsai said there is no timetable yet for the implementation of the full direct links between Taiwan proper and China and that the MAC will consider the introduction of Chinese laborers to Taiwan and allowing more relatives of Taiwan residents to travel to Taiwan.
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