The government should quickly amend the Statute for Investment by Foreign Nationals (外國人投資條例) and Statute for Investment by Overseas Chinese (華僑回國投資條例) to protect Taiwan’s key technology and infrastructure from being controlled by Chinese firms, the New Power Party (NPP) legislative caucus said yesterday.
The party called for amendments to both statutes after hosting a public hearing on the issue on Friday, at which experts highlighted the importance of using the law to block investments from China, or “red capital.”
The government strictly reviews the investments from China, but is more lenient toward investments by foreign nationals, NPP Chairwoman and deputy caucus whip Chen Jiau-hua (陳椒華) said.
The current system allows Chinese investors to disguise their funding as belonging to foreign nationals to enter the Taiwanese market, she said.
“From Kerry TJ Logistics winning the logistics service contract for Hsinchu Science Park (新竹科學園區) and Shopee failing the review for an electronic payment license to China Ocean Shipping Group having control over two piers in the Port of Kaohsiung, we have seen that the current system is far from perfect,” Chen said.
By categorizing investments from Hong Kong and Macau as those made by foreign investors, to whom more lenient standards apply, Chinese-funded Nan Hai Corp was given permission to bid for the Taipei Twin Tower project before its most favored bidder status was revoked by the Investment Commission, Chen said.
Chinese delivery service provider SF Express, by funneling capital through Hong Kong, is able to offer logistics services in Taiwan, and Shanghai Longfeng Group illegally invested in Tatung Co by channeling capital via Hong Kong and Singapore, she said.
Since Beijing in 2015 announced its “Made in China 2025” policy, which encourages Chinese corporations to obtain key technologies and sensitive information by investing in or acquiring firms in other countries, the US in 2018 passed the Foreign Investment Risk Review Modernization Act to review foreign investors, Chen said, adding that Ministry of Economic Affairs officials should study the act.
“The US government is aware that Beijing tries to achieve its political aims through culture, trade and other means. The Taiwanese government should scrutinize these tactics ... and address them by amending current regulations. This would be key to closer Taiwan-US relations,” she added.
NPP caucus whip Chiu Hsien-chih (邱顯智) said the government should seek to address at least six issues by amending the law.
First, the Investment Commission lacks a comprehensive mechanism to investigate whether investors have used many subsidiaries to divert or siphon off funds, as well as to inform investors of their obligations, Chiu said.
“Second, investors do not need to secure approval from the Investment Commission in advance as long as they can keep the shares they hold in a single investment below 10 percent,” he said.
“Third, only direct investors are obligated to report changes in shares in cases involving a transfer of ownership, but such a requirement does not apply to indirect investors,” Chiu said.
“Fourth, investors would not be fined even if they refuse, evade or obstruct an investigation by the Investment Commission,” he said.
Fifth, the lack of penalties for investors who contravene the statutes not only makes it difficult to curb offenses, but also makes it impossible to seek judicial assistance from other countries, and sixth, the government should review the background information of investors and examine the shareholding structure in each case, Chiu said.
NPP Legislator Claire Wang (王婉諭) said that the economics ministry needs to upgrade the status of the Investment Commission and give it more personnel and resources, so that it can review and investigate mounting investment cases from overseas.
NATIONAL SECURITY: Authorities are working to confirm the identities of the military personnel involved and investigating possible illegal conduct and regulatory violations Authorities are probing possible national security implications after Kinmen police and immigration officers on Sunday found a Chinese woman allegedly posing as a tourist while engaging in prostitution involving more than 10 military personnel. The woman, surnamed Chen (陳), has since been deported, authorities said, adding that investigators are still working to confirm the identities of those implicated, as the records only listed code names and aliases. The case stemmed from a report received by the Kinmen District Prosecutors’ Office on Friday last week from the Jinhu Precinct of the Kinmen County Police Bureau. On Sunday, police, along with the National Immigration
GLOBALGIVING: ‘ Caving to external pressure is not acceptable for an organization that has cultivated justice reform and human rights for 30 years,’ one NGO said A slew of non-government organizations (NGOs) have withdrawn from the GlobalGiving fundraising platform after it announced it would use “Chinese Taipei” instead of “Taiwan” from next month. The Taiwan Good Rice Association wrote on Facebook on Friday that it was informed on April 28 via a teleconference call of the change, which was made because the platform wanted to operate in China. Taiwan Good Rice is to terminate all cooperative relationships with GlobalGiving in response to the platform’s “unilateral and non-negotiable” decision to remove references to Taiwan, the NGO said. “Taiwan is in the official name of Taiwan Good Rice Association and the
HEAVY WEATHER: Typhoon Jangmi is due to crash straight into the Ryukyus as airlines look to shift flights to larger aircraft or cancel flights to Okinawa entirely Taiwan’s international air carriers announced flight adjustments over the weekend as Typhoon Jangmi is forecast to hit the Ryukyu Islands today and tomorrow. The Central Weather Administration (CWA) upgraded Jangmi from a tropical storm to a typhoon at 8am yesterday, with the eye located 580km south of Naha city. It was moving north at 19kph. Today, China Airlines’ CI-120, CI-121, CI-122 and CI-123 flights between Taoyuan and Naha, Okinawa, have been canceled as well as CI-132 and CI-133 between Kaohsiung and Naha. EVA Air’s BR-112, BR-113, BR-186 and BR-185 flights between Taoyuan and Naha are also canceled. Low-cost carrier Tigerair Taiwan canceled IT-230,
MULTIPRONGED APPROACH: China has sought to pressure Palau across a number of fronts, but the island nation has staunchly resisted overtures to ditch Taiwan Palau has been firm in backing Taiwan despite Chinese pressure that uses tourism economics, cyberattacks and criminal infiltration as tools to threaten the Pacific ally into renouncing its recognition of Taiwan as a sovereign state. The Presidential Office yesterday announced that Vice President Hsiao Bi-khim (蕭美琴) would visit Palau from Saturday to Wednesday next week at the invitation of Palauan President Surangel Whipps Jr. Whipps in April said in an interview that China had outspokenly asked Palau to “denounce Taiwan.” “And we have said: ‘We have no enemies, but nobody tells us who our friends are,’” he said. Whipps has told reporters multiple times
RSS