|
TAIPEI, TAIWAN - TAIWAN'S cabinet on Thursday announced that it will raise the ceiling on corporate investments on the mainland to 60 per cent of a company's net worth amid improving ties with China.
The cabinet said in a statement it will revise regulations to implement the new measure on August 1.
The move is part of Beijing-friendly President Ma Ying-jeou's proposals to boost the island's flagging economy, especially by improving business ties with China.
Under current rules, local firms with net worth of less than five billion Taiwan dollars (S$222 million) are allowed to invest up to 40 per cent of their net worth in China.
Companies with net worth above five billion Taiwan dollars can invest up to 30 per cent, depending on their size.
The proposal sparked criticism from the opposition Democratic Progressive Party, which warned it could trigger excessive capital flow from the island.
Despite lingering hostility between China and Taiwan, local businesses have channeled about US$150 billion into China since Taipei lifted an investment ban in the early 1990s.
China took some 41 per cent of the island's total exports in the first 11 months of last year. -- AFP
| 
