Taiwan may end China high-tech investment ban

Taiwan will decide by the end of the year whether to relax curbs on high-tech investments in China, a report said Thursday, citing the island’s premier.

The economic ministry will wrap up a review of longstanding controls on semiconductor, flat panel and integrated circuit makers next month, Wu Den-yi told the Commercial Times.

However, certain critical or sensitive technologies should be kept in Taiwan while the companies will also be required to keep their operational headquarters on the island even if the restrictions are eased, Wu said.

Calls for easing controls on high-tech investment in the mainland have been mounting among local industry players as they claim their competitors from South Korea and Japan have been stepping up activity there.

But Taiwan’s opposition, which favours independence from Beijing, has repeatedly warned against easing controls, fearing closer economic integration.

Local businesses are among the biggest foreign players on the mainland, with an estimated 80 billion US dollars invested there.

However, Taipei has imposed restrictions on high-tech firms to avoid the risk of giving China a technological advantage.

China still sees the island as part of its territory awaiting reunification, by force if necessary. However, ties have improved markedly since the Beijing-friendly Ma Ying-jeou became Taiwan’s president last year.

http://www.channelnewsasia.com/stories/afp_asiapacific_business/view/1019211/1/.html

 

Category: China