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Economy

Taiwan opens more sectors to mainland investment

(Xinhua)
Updated: 2011-03-03 10:25
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TAIPEI - Taiwan authorities announced on Wednesday that it is opening 42 new sectors, including semiconductor and LCD manufacturing, to investment from the Chinese mainland, although some sectors would still have restrictions.

Other new sectors included for mainland investment are battery production, wind power equipment manufacturing, chemical machinery and equipment manufacturing, parking services, amusement parks and theme parks, among others.

For mainland investors in integrated circuits, semiconductors, LCDs and other electronic components manufacturing, they will be allowed to take no more than 10 percent of shares in Taiwan companies and less than 50 percent of a joint venture in the island, according to a statement released by Taiwan's economic administration.

Mainland investors in these sectors need to map out their cooperation strategy with Taiwan partners for review by the administration. The applications also need to go through examinations before being approved by relevant authorities, the statement said.

Sectors that manufacture fertilizers, pollution-prevention equipment and general machinery, allow mainland investors to take up to 20 percent of shares in Taiwan companies and less than 50 percent in joint ventures, it said.

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Sectors that will be opened without restrictions include dye manufacturing, battery manufacturing, wind power equipment and public services such as parking and theme park operations.

Taiwan's economic administration will start receiving mainland investment applications for the new sectors on March 7.

Excluding Wednesday's 42 new sectors, Taiwan has so far opened 205 businesses to mainland investment since June 2009, when it first allowed mainland companies to invest in cars, plastics and tourism.

As of the end of last month, mainland investment in Taiwan had only reached $139 million, which is significantly lower compared to the $12.2 billion that Taiwan companies invested in the mainland last year.

As of November last year, mainland investment in Taiwan had created 3,082 jobs on the island, according to statistics released by Taiwan's economic administration.

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