Taiwan likely to allow China to invest in telecoms sector
Taiwanese authorities are likely to allow Chinese mainlanders to invest in the island’s telecommunications sector, according to a report by the Commercial Times.
The mainland investors would be treated as foreign investors, which means that they could hold a maximum direct stake of 49% in fixed-line and long-distance phone operators, and up to 60% if indirect investments are taken into account.
The report also said that mainland investors would be allowed to own up to 50% of a local company in businesses such as value-added networking, while China allows a foreign company to own 50% of a telecommunications company on the mainland.
Earlier this month, Taiwan’s Economics Minister Yin Chi-ming said that Taiwan intends to allow more investment between Taiwan and its largest trading partner, the Chinese mainland.
The new Taiwan President Ma Ying-jeou said Taiwan would implement new rules to boost cross-strait investment. The new rules will be implemented in three phases. The second phase would relax restrictions that prevent companies in certain sectors from investing in the Chinese mainland.
Tags: investment, Taiwan, telecoms