Chinese banks warned off Taiwan acquisitions

Chinese banks will not be allowed to buy Taiwanese financial institutions, even after the economic cooperation agreement is signed between the island and the mainland, Bloomberg reported. Taiwan’s premier Wu Den-yih said while the possibility of Chinese banks setting up branches in Taiwan was being dicsussed, there was no possibility of Chinese lenders being allowed to acquire Taiwanese financial companies. In a speech at the Taiwan Foreign Correspondents’ Club in Taipei, Wu also said his government were considering lifting a ban on Taiwanese companies manufacturing certain products on the mainland. “If Taiwan doesn’t invest in China, we may lag behind and lose our competitive advantage,” he said. This month China and Taiwan will hold the fourth round of talks on expanding cross-strait ties. Wu stressed that negotiations over the proposed Economic Cooperation Framework Agreement would not risk Taiwan’s political position. “I don’t think sovereignty will be undermined,” he said.