Gov’t tightens its grip on China investments

Chairman Joseph Wu of the MAC told a press conference that the measures are based on President Chen Shui-bian’s new “active management, effective opening” strategy on Taiwan’s trade and investment ties with China.

“The government will actively enforce risk management and will adjust various economic and trade measures according to Taiwan’s interests,” Wu said.

“The strategic target is to reduce reliance on China’s economy,” Wu continued.

The MAC head said related rules will be completed by June 30, while those involving legislation or revision of current laws will have drafts by Dec. 31.

He stressed that continued economic and trade development across the Taiwan Strait is an inevitable trend, especially at a time when globalization and regional economic integration are affecting Taiwan’s economic development, but after taking into consideration the various uncertain factors existing in China’s economic development and the special relationships between Taiwan and China, the government here should actively shoulder the responsibility for risk management and ease the conflicts between the interests for individual enterprises and those for the entire nation.

At the same press conference, Vice Economic Minister Shih-yen-hsiang said that the Ministry of Economic Affairs would tighten up its screening on the applications filed by local enterprises to invest in China. If any China-bound investment project exceeds a certain amount of value or involves high technologies, then the government will negotiate with responsible persons of the applicant enterprises on their financial planning, technical transfer, equipment exports, and counter-investment in Taiwan.

After local enterprises make satisfactory commitments on these aspects, the government may also dispatch representatives to China to conduct follow-up inspections on Taiwanese investments there.

Meanwhile, Vice Chairman Lu Tung-ying of the Financial Supervisory Commission, told reporters that the FSC will step up inspecting the Hong Kong branches of Taiwan-based banks, insurance firms and securities companies, study the feasibility of exchanging financial flow information with countries where Taiwanese enterprises have registered their foreign investments, and sign memoranda of understanding with these countries on financial cooperation, among others. The moves are designed to better monitor the financial conditions of Taiwanese investors in China.

On another front, in line with the opening of the local tourism market to mainlanders, the Tourism Bureau under the Ministry of Transportation and Communications (MOTC) will boost guarantee deposits from local travel agencies to NT$2 million from NT$1 million, and will deduct NT$200,000 from the deposits for every inbound Chinese tourist overstaying the allowed period of time in Taiwan, instead of giving travel agencies a “demerit” for the undesirable situation. In addition, travel agencies may see their operating licenses revoked if they commit major irregularities in handling group tours in Taiwan by Chinese mainlanders.

Also yesterday, Vice Chairman Hu Fu-hsiung of the Council of Agriculture said yesterday that his council would determine within 10 days whether to allow entry of two pandas to be given away to Taiwan by China.

Hu said the council would invite experts to set up a screening committee, which would make a final decision on the fate of the two Chinese pandas.

In addition, the council will step up crackdown on illegal outflow of key agricultural technologies and promote cross-Taiwan Strait cooperation in fishing operations.

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