Mainland China asks Taiwan to welcome investment

Industry minister seeks ‘open attitude’ after two cross-strait deals fall through

PUBLISHED : Saturday, 11 March, 2017, 2:10pm
UPDATED : Saturday, 11 March, 2017, 11:51pm

The industry minister for mainland China, Miao Wei, on Saturday called on Taiwan to be more open to mainland investment after two high-profile cross-strait deals fell through.

Taiwan’s ChipMOS Technologies in November said it had scrapped a planned US$373 million stake sale to the mainland’s Tsinghua Unigroup due to uncertainty about Taiwanese regulatory clearance.

It is the second deal in as many months between Unigroup and a Taiwanese manufacturer to be cancelled.

Push to absorb Taiwan ‘is growing’ on mainland

The share sale was cancelled due to political considerations, industry analysts said, after intense scrutiny when the independence-leaning Democratic Progressive Party (DPP) came to power in Taiwan last year.

Speaking on the sidelines of the annual meeting of the National People’s Congress, Miao said economic cooperation between both sides of the Taiwan Strait had made huge progress in the last three decades since the two began a détente.

Beijing welcomed Taiwan chip makers to invest on the mainland, he added.

“Of course, we hope that openness is two-sided, not one-sided,” Miao said.

“We encourage and support Taiwanese companies to develop in the mainland, and at the same time Taiwan should have an even more open attitude towards mainland companies entering Taiwan.”

Miao said such cooperation was good for both economies.

Relations warmed considerably during the previous Kuomintang government of Ma Ying-jeou. The DPP is traditionally less friendly towards the mainland and espouses the island’s formal independence, a red line for Beijing. Shortly after Taiwanese president and DPP leader Tsai Ing-wen took office last May, Beijing cut off official communication with Taipei because Tsai refused to accept Beijing’s view that the island was part of “one China”.

Beijing deems Taiwan to be a wayward province to be taken back by force if necessary.

Taiwan has protected its prized computer chip industry from becoming too reliant and open to the mainland.