Taiwan to ease restrictions on China-bound investment: officials

Taiwan to ease restrictions on China-bound investment: officials

Taiwan is to substantially remove restrictions on China-bound investment on Jan. 1 to boost economic ties with its rival China, as both sides get ready for their expected accession to the World Trade Organization (WTO), officials said Wednesday.

The government would adopt the so-called "aggressive opening, effective management" approach to replace the "no haste, be patient" policy which had restricted China-bound projects, Mainland Affairs Council (MAC) chairwoman Tsai Ing-wen said.

In the new approach, authorities would allow direct investment to the mainland, remove a US$50 million ceiling on a single project, raise investment limits for local listed companies and conditionally allow direct dealings in financial matters, Tsai said.

Taiwan would also relax controls on applications, demanding prior approval of the China-bound project over $20 million instead of current three million dollars.

Tsai said the island must not stick to the 'no haste, be patient' policy to curtail China-bound investment.

"Facing globalization and the new situation after Taiwan and China join WTO, Taipei has to take into consideration the needs for businesses to increase their competitiveness," she said.

The liberalization would become effective on Jan. 1, according to Economic Minister Lin Hsin-i, who left later Wednesday leading a 32-member delegation for the WTO ministerial meeting in Qatar starting on Friday. -- AFP