Mainland Chinese investment in Taiwan slows down
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