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Taiwan to keep telecom sector closed to mainland investment

Taiwan’s Economics Minister said the island will not open its telecommunications sector to mainland investors yet, less than two weeks after China Mobile announced its intention to purchase a stake in Taiwan’s third-largest phone company, Bloomberg reported. Beijing-based China Mobile said last month it wants to buy a 12% stake in Far EasTone Telecommunications. This would be the first investment by a mainland state-owned company in the island in six decades. However, Economics Minister Yin Chi-ming said Tuesday that the telecommunications sector would not be included in the first batch of industries opened to mainland investors, though mainland firms would be allowed to invest in 65 other industries, including automobiles, textiles, rubber and retailing. “In the short-term, the China Mobile deal is unlikely to happen, because of all the political considerations,” said Robyn Hsu, a fund manager at Capital Investment Trust in Taipei.

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