Democratic Progressive Party demands stricter cross-strait investment controls
The China Post news staffThe Democratic Progressive Party yesterday proposed the cross-strait relations law be revised to govern investments from China.
July 21, 2012, 12:05 am TWN
Any investment projects with funding from or control by China's military must be banned, DPP lawmakers said, as they unveiled a draft bill it plans to submit to the upcoming extraordinary session of Legislature.
The law must list sectors from which Chinese investments will be banned: such as projects that may lead to overwhelming domination of the market, which can lead to financial instability, the DPP lawmakers said.
Chinese investments must also be barred from political, social, cultural, educational, telecommunications, media and agricultural sectors, as well as major infrastructure projects, they said.
The DPP said that as Taipei and Beijing are set to sign a cross-strait investment protection agreement, it will facilitate Chinese investors coming to Taiwan.
The economics ministry's existing regulations governing Chinese investments may have to be revised or even abolished because of the agreement, the main opposition party said.
The DPP stressed that regulations governing Chinese investments must be incorporated into the cross-strait relations law to clearly define the rights and obligations.
According to the DPP bill, screening of investment projects from China must be tightened.
The economics ministry should set up an investment screening committee to handle projects worth NT$500 million or more.
Sub-NT$500 million projects can be handled by relevant authorities without going through the screening committee.
But any projects that may have connections with the Chinese Communist Party and government will all be reviewed by the committee.
The DPP said investments must be monitored from the sources of their funding. Any investors who fail to honestly report their sources of capital or their investor structures will be slapped with hefty fines.
The economics ministry may also reject the projects, it said.