Taiwan tightens up on investment from mainland China
- People and companies with links to government, political parties or the military prohibited under new rules to come into effect later this year
- Revisions also redefine mainland Chinese investment in foreign companies
Taiwanese officials said on Thursday that the new regulations were meant to close loopholes and were in line with tighter rules in the United States and Europe on mainland Chinese investment.
“We have amended Article 3, 4 and 6 of Regulations Governing the Permission of Investment by Nationals in Mainland Area, to redefine the status, proportion and structure of Chinese investment in Taiwan,” Su Chi-yen, a spokesman for Taiwan’s Investment Commission, said.
Under the changes, companies in which the mainland government, political parties or military have a stake will be barred from investing in Taiwan. The same applies to companies in which the board is controlled by mainland Chinese stakeholders.
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The new ruling also redefines mainland Chinese investment in foreign companies.