Cabinet Ratifies Second Liberalization List for Chinese Investments

Taipei, Feb. 25, 2011 (CENS)--Chinese investors will be able to buy into a number of hi-tech firms, including flat display panel (FDP), foundry, IC assembly, and DRAM (dynamic random access memory), owing up to 10% of stake, as well as pharmaceutical and biomedicine, for a maximum of 20% stake, according to the second-wave list for liberalization of Chinese investments, ratified by the Executive Yuan (the Cabinet) yesterday (Feb. 24).

The liberalization list will be put into practice after being sent to the Legislative Yuan for reference recently. The list contains 20-30 manufacturing lines, which will be added to 69 lines on the first-wave list, boosting the share of liberalized lines to over 40% of Taiwan's total manufacturing lines.

Except the aforementioned items, the liberalization list also contains medical appliances, metal machinery, dye, and fertilizer. Chinese investors can also own up to 50% stake in harbor operations.

Chinese investors cannot own more than 10% stake in hi-tech firms, to prevent them from becoming their major shareholders and maximum stake is set at 20% for pharmaceutical and biomedicine firms, so that they cannot become influential shareholders.

In addition to buying into existing firms, Chinese investors can also establish joint ventures with local partners and own a maximum of less than 50% stake in them. The ceiling is preventing them from controlling such ventures.