08.27.2001
“Active opening with effective management”

• Development: EDAC proposed replacing “no haste, be patient” policy with China to “active opening with effective management”. Accordingly, the US$50m investment cap will be lifted and large projects will be examined on a case by case basis.

• Analysis: Although proposal has yet to be recognized as Cabinet’s new China investment policy and timeline was unspecified, progress is being made. We may see speeding up of developments in coming months, ahead of WTO accession.

• Primasia View: More progress is needed - such as transport links, which require further negotiations toward “one-China” precondition. Overall, news is positive for investor sentiment.