萬國法律事務所

Taiwan’s Ministry of Economic Affairs reported in the Legislative Yuan that it has finalized a third increase of industry categories that will be opened to Chinese investors, and further that the related details have been approved by the Executive Yuan. This change cancels the maximum limits on shares that can be held by Chinese investors in industries involved in key technologies, such as panels, semiconductors, LEDs or solar energy, and replaces the limitation restricting these investors from obtaining controlling power in the invested company. The MOEA explained that, despite criticism from legislators, this will constitute stricter limitations.

MOEA reported that the industries newly opened to Chinese investors are mainly manufacturing, service and public infrastructure industries, while agriculture remains closed.

The range of industries opened to Chinese investors in the manufacturing industry is approximately 97% compared to other already opened industries. As to the key industries, the new limitations placed on Chinese investors is that such investors are prohibited from obtaining controlling power and that they must submit a cooperation strategy, which should be reviewed by a special committee.

The MOEA explained that in order to meet the restriction of not having controlling power, shares held by Chinese investors must not be more than 50% of the total shares of the company and Chinese investors cannot elect or lay off more than half of the main members of the board of directors. Therefore, MOEA asserts, these new requirements are stricter than the old requirements under the previous limitation.