01.05.2001
Upper limit on investments in China to be ‘lifted’

Premier Chang Chun-hsiung yesterday instructed his cabinet to come up with ways to improve the investment climate in Taiwan, responding to pressure from the business community on investments in China. The govt. hopes to encourage local firms to remain in Taiwan as restrictions on investment in China are gradually lifted. It is our view that these investment inducements should be concentrated in areas where Taiwan has a competitive advantage. A further step in the lifting of restrictions was taken yesterday, when a senior official from the MOF reportedly stated that the US$50m upper limit on investments in China will be lifted on a case to case basis. We believe that further moves will gather speed in the months to come.
Holger Nygaard