TAIPEI, Taiwan (AP) -- Taiwan's Ministry of Economic Affairs said Wednesday the island is opening its much coveted tech sector to limited Chinese investment amid steadily improving ties between the sides.
The move reflects Taiwanese President Ma Ying-jeou's monthslong efforts to bolster the island's economy with Chinese help, which includes significant Chinese purchases of Taiwanese products.
But critics say Ma's initiative will eventually weaken the competitiveness of Taiwanese industries by sharing too much technology with the mainland.
The Taiwanese government is allowing Chinese companies to take up to 10 percent of shares in local semiconductor and liquid crystal display manufacturing companies, two world-leading Taiwanese sectors, a ministry statement said.
These investments will be subject to a government vetting process, the statement said.
It said the island will open its chemical and machinery industries to limited Chinese investment, while battery manufacturing and wind power equipment businesses will be opened without restrictions.
Taiwan first allowed Chinese investment on the island in June 2009 by opening its car, plastic and tourism sectors to mainland funds.
The total amount of mainland investment in Taiwan through the end of 2010 was only about $132 million, compared to the more than $130 billion that Taiwanese companies have invested in China over the past two decades. Chinese officials have complained there are still too many obstacles for mainland companies to invest effectively in Taiwan.
The current upsurge in commerce between the sides comes amid Taiwanese President Ma Ying-jeou's efforts to lower tensions across the 100-mile- (160-kilometer-) wide Taiwan Strait by linking Taiwan's economy ever closer to the mainland's lucrative markets.
China and Taiwan split amid civil war in 1949. The mainland still claims the island as part of its territory.
The move reflects Taiwanese President Ma Ying-jeou's monthslong efforts to bolster the island's economy with Chinese help, which includes significant Chinese purchases of Taiwanese products.
But critics say Ma's initiative will eventually weaken the competitiveness of Taiwanese industries by sharing too much technology with the mainland.
The Taiwanese government is allowing Chinese companies to take up to 10 percent of shares in local semiconductor and liquid crystal display manufacturing companies, two world-leading Taiwanese sectors, a ministry statement said.
These investments will be subject to a government vetting process, the statement said.
It said the island will open its chemical and machinery industries to limited Chinese investment, while battery manufacturing and wind power equipment businesses will be opened without restrictions.
Taiwan first allowed Chinese investment on the island in June 2009 by opening its car, plastic and tourism sectors to mainland funds.
The total amount of mainland investment in Taiwan through the end of 2010 was only about $132 million, compared to the more than $130 billion that Taiwanese companies have invested in China over the past two decades. Chinese officials have complained there are still too many obstacles for mainland companies to invest effectively in Taiwan.
The current upsurge in commerce between the sides comes amid Taiwanese President Ma Ying-jeou's efforts to lower tensions across the 100-mile- (160-kilometer-) wide Taiwan Strait by linking Taiwan's economy ever closer to the mainland's lucrative markets.
China and Taiwan split amid civil war in 1949. The mainland still claims the island as part of its territory.
