Main­land Chi­nese in­vest­ment in Tai­wan slows down

The China Post - - LOCAL - BY JOHN LIU

Be­tween Jan­uary and May, China-based in­vest­ment in Tai­wan plunged more than 67 per­cent to NT$45.92 mil­lion com­pared with a year ago, ac­cord­ing to a re­port re­leased by the In­vest­ment Com­mis­sion at the Min­istry of Eco­nomic Af­fairs (MOEA, ).

The In­vest­ment Com­mis­sion ap­proved 58 Chi­nese in­vest­ment ap­pli­ca­tions. The fig­ure rep­re­sented a 16-per­cent in­crease, although the to­tal amount plum­meted 67.56 per­cent to US$45,926,000.

The MOEA at­trib­uted the drop to last year’s big-ticket in­vest­ment and con­se­quently high fig­ures, as well as Chi­nese gov­ern­ment-af­fil­i­ated com­pa­nies’ grow­ing wari­ness as Tai­wan’s pres­i­den­tial elec­tion nears.

China’s Col­or­ful Group spent US$17.78 mil­lion in a lo­cal de­vel­op­ment com­pany, while Yueda Textile Group put up US$17.78 mil­lion to in­vest in Tex-Ray In­dus­trial Co. ( ).

Since Chi­nese in­vest­ment was ac­cepted around six years ago, the gov­ern­ment has ap­proved a to­tal of 677 cases and the sum of in­vest­ment to­taled more than US$1.24 bil­lion.

In­vest­ment May Still Go Up

The amount of in­vest­ment may still jump up, if two big-ticket in­vest­ments are sub­mit­ted to the In­vest­ment Com­mis­sion later this year, ac­cord­ing an MOEA of­fi­cial.

One is a joint ven­ture be­tween CTBC Fi­nan­cial Hold­ing Co. (

) and China-based CITIC Group Cor­po­ra­tion ( ), while the other one be­ing a pro­posed sell — with a price tag of NT$48 bil­lion — of five-star ho­tel Man­darin Ori­en­tal Taipei (

) to a Shang­hai-based com­pany. If the two cases got the green light from the In­vest­ment Com­mis­sion, this year’s to­tal amount may even hit a new record.

CTBC and CITIC inked an agree­ment on June 8, mark­ing the first Chi­nese in­vest­ment in Tai­wan’s fi­nan­cial sec­tor. Although CITIC only owns 3.8 per­cent stake in CTBC, it is the com­pany’s third largest share­holder and is el­i­gi­ble for the board di­rec­tor po­si­tion and in­flu­ence op­er­a­tion.

CITIC is a state-owned in­vest­ment com­pany es­tab­lished in 1979 with the ap­proval of for­mer Chi­nese leader Deng Xiaop­ing. The fact that it plays an im­por­tant role in China’s na­tional de­vel­op­ment, in­clud­ing na­tional se­cu­rity and mil­i­tary sys­tems, is a great con­cern to many in Tai­wan.

Other In­vest­ment Num­bers

The num­ber of for­eign in­vest- ment ap­pli­ca­tions over­all in Tai­wan grew 6.1 per­cent to 1,443, while the to­tal amount rose 14.29 per­cent to US$ 1,717,608,000. It is a sign of grow­ing for­eign in­vest­ment in Tai­wan, said the MOEA.

In re­gards to Tai­wan’s over­seas in­vest­ment, although the num­ber of ap­pli­ca­tions dropped some 15 per­cent to 164 cases, the to­tal amount soared 22.76 per­cent to US$2,813,224,000.

Tai­wan’s in­vest­ment in China, in terms of num­ber of ap­pli­ca­tions and amount, dived more than 22 per­cent and 18 per­cent, re­spec­tively. The amount reg­is­tered at US$3,479,954,000

Newspapers in English

Newspapers from Taiwan

© PressReader. All rights reserved.