Taiwan to welcome more Chinese investments

BANGALORE, INDIA: Taiwan has hiked investment ceilings for Chinese investors in key sectors like liquid crystal displays (LCDs), semiconductors, integrated circuit assembly and testing, metal tool manufacturing, and machinery used for electronics and chip production.

The economics ministry has formulated new regulations in which Chinese investors are no longer limited to a 10 per cent stake in local companies or 50 per cent in joint ventures.

The new regulations stresses on approval of all investments by Taiwanese regulators. The rules were revised to ensure development of key industry verticals.

The new regulation would also cover light-emitting diodes and solar cells manufacturers which were open to Chinese investment for the first time, reports Argin Chang of the Reuters.

"Some of Taiwan's companies are operating near the forefront of their industries. As with anywhere else in the world, there are some reservations when it comes to industry competition and national security," said economic vice-minister Hwang Jung-chiou.

Taiwan has raised investment ceilings in its chip making, chip packaging and flat screen sectors, so that it can attract more capital and make the market more competitive.

In 2009, Taiwanese government relaxed a ban on Chinese investments but since then, Taiwan has approved only $270 million of mainland investments.