Taiwan to Unfreeze Direct Investment on Mainland

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Last updated at: (Beijing Time) Tuesday, July 30, 2002

Taiwan to Unfreeze Direct Investment on Mainland

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Control on direct investment to mainland from Taiwan has finally thawed. Taiwan "Executive Yuan" lately revealed that Taiwan will from August 2 on implement its No. 4 article on "Methods of Investment to Mainland", it will delete the clause of "doing business with mainland must go via third place".

Although the formal notice will be issued on July 31, news has been leaked out little by little from the "Mainland Affair Council" and Taiwan's "Economy Ministry".

Special regulations set on insurance sector

Insurance industry will be the first financial sector to be opened to mainland, the "Mainland Affairs Council" on July 24 pointed out that in principle, it agreed financial sector to open to mainland by way of direct investment or establishment of branches.

The council said that due to insurance's special characteristics and limited fund flow opening this sector would not pose big risk to Taiwan.

Securities and investment credit sector will also be opened in principle, but securities involve capital flow between the two sides, fund flow influence may cause impact on Taiwan's stock market, so detailed time on opening this sector has not been set yet.

Officials of the "Executive Yuan" said that in consideration of financial information, public issue companies including listed companies must publish and make information transparent, otherwise, the "Securities Council" will punish them in accordance with related laws and regulations.

According to the "Executive Yuan", Taiwan businessmen can freely choose direct or indirect investment to mainland, but chip makers or important investment must undergo direct investment in order to control fund flow.

By PD Online Staff Li Yan

Taiwan Pours More Investment in Mainland

Taiwan Authorities to Open Direct Taiwan Investment in Mainland: on the morning of November 7, 2001,Taiwan "Administrative Yuan" adopted the executive plan for the "implementation of investment in the mainland, active opening, and effective management" put forward by the department concerned, formally liberalizing direct investment in the mainland and abolishing the investment ceiling of US$50 million.

Taiwan Investment to Be Encouraged after China's WTO Entry: China will continue to encourage Taiwan investment in the mainland and protect Taiwan investors' interests after the two sides of the Taiwan Straits enter the World Trade Organization (WTO), a spokesman for the Taiwan Affairs Office of the State Council said.

Direct Taiwan Investment in China's Mainland Shoots Up: Statistics from Taiwan "Ministry of Economic Affairs" show that in the first nine months of this year, direct Taiwan investment in China's mainland totaled US$2.122bn, a near 19 percent increase over last year.

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