MOC Expects Taiwan to Open More Sectors to Mainland Investment

飞雪寒冰

The Ministry of Commerce expected Taiwan to open more sectors to investors from the mainland and called the initial opening announced on June 30 a major step.

Taiwan announced that it was opening key areas of its manufacturing, services and infrastructure industries.  

"The list of categories was, absolutely, big progress, but some sectors may be not fully open," Vice Minister of Commerce Chen Jian told Caijing on the sidelines of a July 2 industry forum. Chen did not elaborate.

The initial phase of the opening, according to a June 30 statement issued by Taipei, permits investment in areas such as computer parts, auto manufacturing, transportation and construction of resort hotels and commercial ports.

飞雪寒冰

Still subject to investment restrictions, however, are new strategic sectors like solar photovoltaic technology, flat panel displays, monocrystal silicon wafers and traditional Chinese medicine. Those prohibited areas mostly reflect longstanding Taiwan policy not to allow mainland control of the most advanced manufacturing technologies, which form a key part of Taiwan's competitive advantage.  

Real estate development also remains restricted, although employees of mainland companies operating in Taiwan are permitted to buy property for private use, while opening of the financial sector is pending an agreement by both sides on regulatory arrangements, the statement said.

Chen said the commerce ministry will soon organize executives in eight sectors including textiles, construction and electronic engineering to visit Taiwan in search of investment opportunities.

飞雪寒冰

The commerce ministry plans to open offices in Taiwan after mainland investments prosper on the island, Chen said.

He added that China's exports and imports continued to fall in June, but their decline slowed. June trade figures are due to be released in mid-July.  

Chinese exports slumped 26.4 percent in May from a year ago to US$ 88.8 billion, while imports fell 25.2 percent to US$ 75.4 billion, according to customs data.