Without society reaching a consensus, the government has rushed through the idea much too hastily

Without society reaching a consensus, the government has rushed through the idea much too hastily

In regards to the announcement from the Ministry of Economic Affairs on “Regulation for Chinese Investment in Taiwan ” and other related legal issues, the Democratic Progressive Party spokesperson Cheng Wen-tsang (鄭文燦) today (30th) said that, opening to Chinese investors has not become society's consensus, and the government has yet to make any evaluations for the proposal. Bearing in mind that this would have a major impact on Taiwan, the government has rushed through the idea much too hastily.

Cheng added that in this regulation, there is no article to prohibit Chinese businesses from gaining ownership to Taiwan's companies , which will lead to major corporations such as Taiwan Semiconductors Manufacturing Company easily being taken over by Chinese companies. Furthermore, measures to prevent the outflow of human capital and technology were also missing. Without these safeguard mechanisms, this regulation is just all bark and no bite, with no substantial function.

Cheng further pointed out that the government has so far only prohibited Chinese enterprises with military background from investing in Taiwan, but has yet to restrict investment from Chinese state-owned enterprises. Given China’s political intention towards Taiwan, Ma administration's hasty opening up to China will seriously damage Taiwan’s national interests. Additionally, Ma administration did not set a ceiling on the total amount of Chinese investment each industry can receive, which may lead, alarmingly, to them being eventually manipulated by the Chinese companies, whom are heavily controlled by the Chinese government. The Ma administration has placed great hope in China's ability to stimulate our economy, but under these conditions, where no safeguards are in place, do these policies really benefit the Taiwanese people?

Cheng commented that according to China's regulations, Chinese investors that invest in Taiwan must not hurt China's security interests or its ultimate goal of unification. The Chinese Ministry of Commerce also reserves the authority to supervise investors’ activities as well as the power to impose sanctions.

“Without thorough assessment of the threat to national security and the lack of a set of regulations, opening our airlines, financial and telecommunications sector, etc. to Chinese investors will have a devastating effect on Taiwan”, Cheng said.

Cheng further points out that Taiwan is not short of financial capital, so opening the country to Chinese investment will have little stimulating effect on Taiwan's economy. On the contrary, it will actually increase competitive pressure for Taiwanese industries. Opening retail and the wholesale business to Chinese investors will allow takeover of our marketing channels, which will not only weaken the competency of our enterprises, but also lead to many other problems. For example, in the realm of public health, the government has yet to propose any regulation regarding the prohibition of tainted Chinese goods.