China’s investment cap ineffective

Excerpt: … “Obviously the 40-percent cap set up in 1997 has failed to meet both the needs of the local industries and the government’s goal of managing the flow of China-bound capital,” Wu said at a forum held by the Taiwan New Century Foundation on how Taiwan can prepare itself for the hidden dangers of the Chinese economy.Wu said that the government was currently reviewing the feasibility of the restriction, in the context of both allowing local industries to take advantage of the economic opportunities in China, and enhancing the industries’ ability to diversify their investments in the global market … In response to the threat by the Chinese National Federation of Industries to hold demonstrations in November if the government doesn’t make progress on lifting the investment cap and ban on direct cross-strait air links, Wu said that the government is trying to find a balanced solution to the problem. “Our consideration is not simply to lift the 40 percent investment cap. Rather, we are thinking about how to make the management of Taiwanese businesses’ investment in China more effective, just and transparent,” Wu said. He added that the government’s goal is to help Taiwanese people reach the cutting edge of their industries in the global market … (Read this article by Chang Yun-ping, of July 16, on Taipei Times).

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