Taiwan to loosen China investment restrictions

Taiwan will loosen restrictions on investments in China in order to help the island’s struggling economy, AP reported, citing the Taiwan’s Premier Liu Chao-shiuan. Taiwan companies will be allowed to invest 60% of their net worth in the mainland. Current rules allow Taiwan firms with a net worth of US$160 million to invest an equivalent of 20% to 30% of that amount in China, while a 40% cap applies to companies with a smaller net worth. Liu also said Taiwan’s government will waive caps on China investments for Taiwan subsidiaries of multinational companies and for Taiwan companies that maintain their headquarters on the island after making their China investments. The measure is expected to be approved by Taiwan’s cabinet on Thursday.