Taiwan eased limits on investing on the mainland yesterday, a move applauded by Taiwanese companies anxious for a bigger piece of the mainland market.
Supporters said the changes will make firms from the island province more competitive.
The policy shift involved a list of suggestions made last summer by an elite group of economic advisers to the Taiwan government.
One of the most significant changes is the abandonment of a policy that put a US$50-million cap on single invest-ment on the mainland, The Associated Press reported.
The government also decided to simplify the review process for mainland-bound investments valued below US$20 million. Investments that exceed that amount will be required to pass more rigorous inspections.
"There is only one road for Taiwan to walk and that's the road of liberalization," said Wang Yung-ching, the chairman of Formosa Plastics Corp.
While government estimates put Taiwan's overall investment on the mainland at US$60 billion, less-conservative estimates say the figure is two to three times that amount.
How the new policy will change previous restrictions - such as a ban on investing in high-tech and large infrastructure projects on the mainland - is still unclear. Taiwan still prohibits its companies from making laptops and other advanced electronic products on the mainland.
The Taiwan government will form a special task force to decide which industries should remain restricted from investing on the main-land, said a Taiwan official.
(eastday.com November 8, 2001)
