Taiwan's economy is poised grow significantly this year as the island relaxes barriers to investment from its old rival, mainland China.
Taiwan’s economy, the world’s 19th largest, is poised to grow significantly this year as officials open pipelines to new investment from China, capitalizing on an old political foe that has recently agreed to talk business.
Economic planners on the manufacturing-intensive island raised stock market investment caps on certain high-tech firms last month. They said they would later increase the 247 categories of business that are open to Chinese foreign direct investment (FDI), meaning they can pay directly into a Taiwanese company in exchange for a portion of any profits.
Going a step further, Taiwan’s top China policymaker, Lai Shin-yuan, says the government is studying when to let China’s wealthy investors pursue mergers and acquisitions (M&As). And Chinese investors may one day find it easier to buy real estate in Taiwan, provided they need the property for routine business, not speculation.
The taps are expected to begin flowing from June after the two sides sign agreements offering first-ever legal protections to each other’s investors. The opening marks a major diplomatic embrace for the two rivals, a relationship long seen as a dangerous flashpoint in Asia.
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