No rash opening to Chinese investment: Ma Ying-jeou

“We have allowed Chinese investment in only 100 types of Taiwan businesses, and this is a very limited and cautious opening considering the scale of Taiwan's economy, “ Ma said in response to reporters' questions at a news conference in Panama City, Panama.

“Chinese investment is not permitted in areas that might affect Taiwan's national defense and territorial security, “ the president said. “The government will closely monitor the situation prior to any further opening.”

“We have not allowed any imports of Chinese agricultural or farm products to Taiwan — a position that we will stick to firmly, “ he stressed.

Responding to the speculation that the move to allow Chinese investment in the Taiwan market would jeopardize the island's national security, Ma said he does not believe that this would happen.

“The one-way flow of Taiwanese capital to China is very inequitable. Why should Chinese investment not flow to Taiwan? “ he said.

Ma arrived in Panama June 30 as the head of an official delegation to attend the July 1 inauguration of Panamanian President Ricardo Martinelli. He is scheduled to travel to neighboring Nicaragua later Friday on the last leg of his diplomatic trip to two of Taiwan's allies in Central America.

Taiwan's Ministry of Economic Affairs (MOEA) announced June 30 that, effective immediately, Chinese investment would be allowed in 100 types of Taiwanese industries ranging from manufacturing and service to commercial port facilities. It also released the regulations that would govern applications by Chinese businesses seeking to open subsidiary or branch offices in Taiwan.

The announcement marked a breakthrough in cross-Taiwan Strait ties, which have improved noticeably since Ma and his Kuomintang (KMT) administration took office in May last year.

Responding to concerns that Chinese investment in local airports and seaports could put Taiwan's national security at risk, the MOEA explained Thursday that such investments will be allowed only in non-restricted zones of commercial ports, such as warehouses, transit hotels, international conference centers and parking lots.

Chinese capital will not be authorized in restricted areas, such as airports, runways or repair and maintenance plants, the ministry said. The regulations also prohibit the investment of funds from the Chinese military or related authorities, the ministry added.

In addition, Chinese investment is not permitted in monopoly industries such as water, electricity and fuel suppliers, or in business sectors that play a key role in domestic economic development, financial stability or national security, according to the regulations.

The MOEA said it believes the stringent regulations that limit foreign investment — including capital from China — to no more than a 50 percent share in Taiwanese companies will also help prevent undue leverage by Chinese investors in local businesses.

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