Taiwan to allow mainland investments in technology

Taiwan will, for the first time, permit Chinese investment in its prized technology companies, a major move towards opening its economy to mainland China, the Financial Times reported. Taiwan’s Ministry of Economic Affairs has proposed allowing Chinese investment of up to 10% in Taiwanese technology companies, and up to 50% in new technology-sector joint ventures. This would give mainland investors access to some of Taiwan’s most globally competitive companies. In addition, the new rules would make it easier for Taiwanese companies to forge strategic alliances with their customers or suppliers in China, which is already its biggest export market by far. Chinese investment was forbidden in Taiwan until 2009, when 99 sectors were liberalized in the first round of trade opening. The move led only to US$137 million of Chinese investment into Taiwan.