New sectors open to Chinese investors

The new list brings to 247 the total number of industries that will be opened to Chinese investment since the first round of liberalization was announced on June 30, 2009.

The newly added categories listed in the new rules to come into effect on Monday, March 7, include 25 sectors in manufacturing, eight in services and nine in public infrastructure, the MOEA said.

“The first list in 2009 served as a test of the market's temperature, and the second round is expected to attract more Chinese investment due to its strategic advantages,” Minister of Economic Affairs Shih Yen-shiang said.

Mainland investors will be allowed to hold a maximum 10 percent share in Taiwanese companies in five highly sensitive manufacturing sectors including semiconductor making, semiconductor packaging, assembly and test (SATS), flat panel making, metal cutting machine tool making, electronics, and the semiconductor and electronics production equipment sectors.

Mainland businesses are not allowed to hold more than 50 percent of shares in joint ventures between Mainland Chinese and Taiwanese investors in these sectors and they shall have no control in newly founded companies. Mainland investors are also required to provide cooperation strategy proposals to the MOEA for approval.

For the 10 categories of less sensitive businesses (including metallurgy machinery, fertilizer, metal processing tools, woodwork machinery, chemical engineering machinery, plastic and rubber processing tools, other unclassified specific machinery, prime movers, pollution prevention facilities and other general machinery sectors) mainland investors will be allowed hold up to 20 percent of shares. Mainland businesses are also not allowed to hold more than 50 percent of shares in joint ventures in these categories or have control in newly founded companies.

They will be granted full access to the remaining 10 businesses that are categorized as the least sensitive, including dyes and paints, cleaning products, metal molds, metal structures, metal architectural components, metal thermal processing, metal surface processing, wind power generators, battery sectors, as well as the repair and installation of industrial machineries industry.

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