Chinese Firms Permitted to Invest in Some Strategic Lines

Taipei, March 3, 2011 (CENS)--The Ministry of Economic Affairs (MOEA) publicized the second-wave liberalization list for Chinese investments in Taiwan, allowing investors from the other side of the Taiwan Strait to invest in such strategic lines as semiconductor, flat panel display, and machine tool.

The list contains 42 items, including 25 in the manufacturing sector, eight in the service sector, and nine in public construction. Chinese investors will be able to file investment applications from next Monday (March 7), at the earliest.

China Ocean Shipping (Group) Company is likely to be among the first to render investment application, for its plan to buy into Kao Ming Container Terminal Corp., a submarine of Yang Ming Marine, for the development of the sixth container terminal of Kaohsiung Harbor.

Leading Chinese FPD firms may also probe investment opportunities in Taiwan, when attending a procurement mission for FPD and other electronic products in June. The mission is expected to procure up to US$5.5 billion worth of goods.

Shih Yen-shiang, economics minister, expressed welcome for Chinese clients or channel operators of domestic FPD, semiconductor, and machine-tool firms to own stakes in the latter, thereby helping Taiwanese firms penetrate the Chinese market further.

Chinese investors can buy into existing FDD firms, for a maximum stake of 10%, or set up joint ventures with local partners, owing up to 49% stake. They cannot retain controlling influence in those companies and the investment applications must be subject to a strategic review for industrial cooperation.