Chinese investors are not allowed to control their venture capital businesses in Taiwan. That’s according to the Investment Commission under the Ministry of Economic Affairs on Friday.
Executive secretary of the commission, Chang Ming-pin, said that although Chinese citizens can invest in Taiwan’s venture capital sector, they cannot own a controlling majority stake in their venture capital corporations in Taiwan.
Chang’s remarks came after Alibaba Group chairman Jack Ma announced that he plans to launch a NT$10 billion venture capital fund in Taiwan to finance local young entrepreneurs. Ma’s announcement generated public misgivings about Alibaba’s intention to lure promising start-ups from Taiwan.
Chang said it was exactly due to such concerns that Taiwan restricts Chinese investors from having control over the venture capital businesses.