Taiwan is going to change its definition of what constitutes Chinese investment in Taiwanese businesses. That was the word from Minister of Economic Affairs Wang Mei-hua.
On Wednesday, Wang said that this will be achieved through a draft amendment to a current law governing Chinese investments. She said that problematic cases of Chinese investment in the past and the new Hong Kong national security law are both behind the government’s decision to amend the law.
The current law limits Chinese direct or indirect ownership of Taiwan company stocks to 30%. But there are concerns about more indirect Chinese investments coming in through funds from Hong Kong or other countries. Wang said the amendment to the law will seek to prevent this. In addition, Wang said the revised law will also involve broader monitoring of any funds related to the Chinese Communist Party or the People's Liberation Army.
Wang also said that the new law would not be retroactive. However, she said that the law will apply in cases where companies that already receive Chinese investment receive more in the future.