Competition in China's personal-computer market could intensify dramatically if Taiwan passes a proposal allowing its producers to invest directly in the mainland. Lin Hsin-i, Taiwan's economic affairs minister, said the government was considering easing curbs on notebook computer-makers investing in China. 'We need to reevaluate the situation,' Mr Lin said. 'We have been in discussions with manufacturers.' Taiwan hopes the move will allow local computer makers to forge closer commercial links with its neighbour. The Taiwan Cabinet was expected to make a final decision next month, Mr Lin said. He said the government was also considering allowing Taiwan investors to set up eight-inch wafer plants in China but a ban on the more advanced 12-inch plants would remain in place. Two weeks ago, the Taiwanese Government said it was prepared to relax curbs on investment in China to preserve competitiveness. The government imposes an investment ceiling of US$50 million per project in China and bans firms from investing in strategic sectors such as information technology industries. The minister's comment came after an advisory panel last month urged the government to drop the 'no haste, be patient' policy, prohibiting trade and investment with China for one that advocates 'aggressive opening, effective management' of risks. Alex Tang, of Core Pacific-Yamaichi, said it would be good for Taiwanese PC makers if the curbs were removed.