The New Power Party (NPP) caucus yesterday called on the Investment Commission to punish businesses that invest in China without permission, after Foxconn Industrial Internet Co Ltd (FII) invested in Chinese chip company Tsinghua Unigroup.
FII, which is 85 percent owned by Hon Hai Precision Industry Co, invested 5.38 billion yuan (US$795.7 million) in the Chinese-backed company earlier this month.
Not only is the deal politically sensitive, Hon Hai also failed to follow the procedure stipulated in the Act Governing Relations Between the People of the Taiwan Area and the Mainland Area (臺灣地區與大陸地區人民關係條例), which requires investments in China in sensitive industries or in excess of US$1 million to be approved in advance, NPP caucus whip Chiu Hsien-chih (邱顯智) told a news conference in Taipei.
Photo: Tu Chien-jung, Taipei Times
Hon Hai made the investment on July 11 and submitted it to the commission for review on July 19, he said.
According to Article 35 of the act, Hon Hai can face a fine of up to NT$25 million (US$835,729) for investing before obtaining approval, he said, adding that the fine can be imposed repeatedly if the company does not resolve the issue.
He questioned whether the fine is too lenient for the company in comparison to its investment and asked the government to reconsider whether the penalties are effective in deterring huge investments made by multinational enterprises.
The commission should consider the impact of the investment on Taiwan’s competitiveness, he said.
Even if approval is granted, the commission should add an incidental provision based on the Administrative Procedure Act (行政程序法) to reserve the right to rescind the approval if an unexpected situation arises, he added.
NPP Legislator Claire Wang (王婉諭) said that Tsinghua plays an important role in China’s semiconductor development and is owned by Beijing Zhiguangxin Holding Co, whose biggest shareholders are financially backed by FII and the Chinese State Council.
The investment can therefore be considered Hon Hai supporting the Chinese semiconductor industry together with Beijing, which might threaten Taiwan’s semiconductor industry in the long term, she said.
NPP Chairwoman Chen Jiau-hua (陳椒華) warned the government against the impact the investment might have and demanded that it review the case strictly.
Industries that involve important semiconductor technologies such as IC design and 12-inch silicon wafer production were listed as “prohibited categories” for investment in China, but were changed to “general categories” by the administration of former president Ma Ying-jeou (馬英九), she said.
Although the National Security Act (國家安全法) was amended in May to protect Taiwan’s “core” technologies, its effectiveness might be limited if the list of prohibited investment items is not updated, she added.
The Central Weather Administration (CWA) today issued a sea warning for Typhoon Fung-wong effective from 5:30pm, while local governments canceled school and work for tomorrow. A land warning is expected to be issued tomorrow morning before it is expected to make landfall on Wednesday, the agency said. Taoyuan, and well as Yilan, Hualien and Penghu counties canceled work and school for tomorrow, as well as mountainous district of Taipei and New Taipei City. For updated information on closures, please visit the Directorate-General of Personnel Administration Web site. As of 5pm today, Fung-wong was about 490km south-southwest of Oluanpi (鵝鑾鼻), Taiwan's southernmost point.
Almost a quarter of volunteer soldiers who signed up from 2021 to last year have sought early discharge, the Legislative Yuan’s Budget Center said in a report. The report said that 12,884 of 52,674 people who volunteered in the period had sought an early exit from the military, returning NT$895.96 million (US$28.86 million) to the government. In 2021, there was a 105.34 percent rise in the volunteer recruitment rate, but the number has steadily declined since then, missing recruitment targets, the Chinese-language United Daily News said, citing the report. In 2021, only 521 volunteers dropped out of the military, the report said, citing
A magnitude 5.3 earthquake struck Kaohsiung at 1pm today, the Central Weather Administration said. The epicenter was in Jiasian District (甲仙), 72.1km north-northeast of Kaohsiung City Hall, at a depth of 7.8km, agency data showed. There were no immediate reports of damage. The earthquake's intensity, which gauges the actual effects of a temblor, was highest in Kaohsiung and Tainan, where it measured a 4 on Taiwan's seven-tier intensity scale. It also measured a 3 in parts of Chiayi City, as well as Pingtung, Yunlin and Hualien counties, data showed.
Nearly 5 million people have signed up to receive the government’s NT$10,000 (US$322) universal cash handout since registration opened on Wednesday last week, with deposits expected to begin tomorrow, the Ministry of Finance said yesterday. After a staggered sign-up last week — based on the final digit of the applicant’s national ID or Alien Resident Certificate number — online registration is open to all eligible Taiwanese nationals, foreign permanent residents and spouses of Taiwanese nationals. Banks are expected to start issuing deposits from 6pm today, the ministry said. Those who completed registration by yesterday are expected to receive their NT$10,000 tomorrow, National Treasury
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