Taiwan opens door to investment from Chinese mainland

Taiwan authorities opened up the island to Chinese mainland investments yesterday with 100 categories of manufacturing, service and infrastructure sectors in the initial opening-up list.

Under two new regulations that went into effect, mainland individuals, companies and institutions can set up branch offices, wholly owned companies or joint ventures on the island.

Investment from firms based outside the Chinese mainland, in which mainland ownership is more than 30 percent, will also be regarded as mainland investments in Taiwan, the regulations said.

In the initial phase, the Taiwan authority allows mainland investments in 64 categories in the manufacturing sector, 25 categories in the service sector, and 11 categories in the infrastructure sector.

Mainland investment will “help Taiwan's economy prosper” and make international investors more confident in the Taiwanese market, said John Chen-chung Deng, deputy head of Taiwan's Economic Affairs Authority, at yesterday's press conference.

Relevant authorities in Taiwan have also set down regulations on issues such as medical services, education and home purchases for investors and their families, he said.

The move marks the end of the one-way flow of capital from Taiwan to the mainland. In July 1988, the State Council issued regulations encouraging Taiwan compatriots to invest on the mainland.

Liu Xiaohong, deputy general manager of Quanjude (Group) Co, a Beijing-based company that specializes in the famous Peking roast duck, said the newly announced regulations have cleared major obstacles and will accelerate the company's pace to open outlets in Taiwan.

Tuesday's announcement came about two months after the mainland and Taiwan reached a historic consensus on allowing mainland companies to invest in Taiwan during talks between the two sides' top negotiators on cross-Straits relations.

Xinhua
 

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