Gov't to target construction, emerging markets
By Ann Yu, The China Post
September 11, 2012, 12:03 am TWN
The China Post--The government is continuing to put forth economic stimulus mechanisms in the face of the nation's sluggish economy. With a GDP growth forecast of 1.66 percent in 2012, and export rates still listless, the Executive Yuan faces many questions in terms of practical measures to boost the economy.
Premier Sean Chen took questions from reporters yesterday, stating the government will announce its new invigorating plans on Tuesday at the earliest, including plans concerning expansion of private investments to public construction, developing emerging markets and creating innovative and diverse industries.
As for the fourth-round of relaxation on the restrictions of Chinese investments in Taiwan, reporters asked about the liberalization on Chinese investments in the flat panel display (FPD) industry that has been a recent topic of discussion among government officials. Chen answered that it was still in discussion among the Ministry of Economic Affairs (MOEA), and that it was not his place to answer this question. "The Executive Yuan respects the professional analysis from the MOEA. We will hear the ministry's reports in the next few days," he explained.
The fourth-round relaxation is the fourth step in a series of liberalization of investments since 2009 in allowing Chinese investors to own controlling stakes in certain industries. The fourth round discusses the lifting of the 51-percent maximum that Chinese stockholders may gain in the seven key industries, although the MOEA will insist on a screening of individual applicants on a case-by-case basis.
The fourth round also includes public construction investments, such as hotel businesses and sports facilities. Other items under consideration include desalination, medical care parks, agricultural technological parks and agricultural infrastructure.
The seven key industries are semiconductors, IC assemblies, FPD and components, metal-cutting tools, electronic and semiconductor manufacturing equipment, LED production and solar cells. The MOEA plans to lift the restrictions for first five industries before extending the liberalization to the last two areas later on.