Panel makers to be able to invest in China: Wu

As soon as AU Optronics begins its construction at the Central Science Park Phase 4 “as promised by K.Y. Lee (AUO's chairnman),” there is a possibility the government will open China to panel makers by the end of the year, Wu said in an interview with the Economic Daily News.

Similar pattern of close interactions between the government and the enterprises in deciding the relax of investment limitations also applied to other industries such as the petrochemicals to ensure businesses have first considered investing in Taiwan before advancing across the strait, the newspaper reported.

Wu outlined three guidelines for businesses planning to invest westward. First, core and sensitive technologies must stay in Taiwan since moving them to China might endanger the island's competitiveness.

Second, the plans are based on industry trends. If herding effect is already apparent in China and the technologies own by the Taiwan enterprises are not unique, then there is not need to hold Taiwan businesses back.

Third, these businesses must keep their R&D and operation headquarters in Taiwan.

“Holding businesses back is only going to reduce their competitiveness, it would not keep their heart,” Wu emphasized.

The Executive Yuan is going to outline principles for panel makers

to invest in China by the year's end.

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