Taiwan softens on high-tech investment in China

Mar 08, 2011
A security guard walks by a plant of flat-screen manufacturer AU Optronics Corp in Taoyuan, Taiwan. Taiwan further relaxed controls Tuesday on high-tech investments in China by local firms, allowing makers of flat-panel television screens to export their most advanced technology to the mainland.

Taiwan further relaxed controls Tuesday on high-tech investments in China by local firms, allowing makers of flat-panel television screens to export their most advanced technology to the mainland.

The move by the island's economic ministry is another sign of the fast warming ties between and its former rival since Ma Ying-jeou of the China-friendly Kuomintang party came to power in 2008.

Ma had pledged to beef up trade links and allow more Chinese tourists to Taiwan.

The rule change, which becomes effective next week, came after the ministry gave the green light in December for the island's leading flat panel maker AU Optronics Corp. to invest $3 billion in eastern China's Kunshan city.

The approval was conditional, as AU Optronics was allowed only to build a liquid crystal display plant there using the so-called "7.5 generation" technology, or one generation lower than its plant built on the island.

AU Optronics' "8.5 generation" plant in Taiwan produces 50-inch panels.

That restriction was aimed at keeping the island's most vaunted high technology at home while allowing its flat-panel makers to tap China's vast market.

But calls for easing controls on investment in the mainland have mounted among Taiwan's high-tech businesses, who argue that their competitors from and Japan have gained the upper hand in .

Taiwan's opposition, which favours independence from , has repeatedly warned against easing controls, fearing closer economic integration.

China still considers Taiwan part of its territory awaiting to be reunified by force if necessary even though the island has ruled itself since their split in 1949 at the end of a civil war.

Explore further: Stock market shrugs off net neutrality vote

add to favorites email to friend print save as pdf

Related Stories

Recommended for you

Google hits back at rivals with futuristic HQ plan

7 hours ago

Google unveiled plans Friday for a new campus headquarters integrating wildlife and sweeping waterways, aiming to make a big statement in Silicon Valley—which is already seeing ambitious projects from Apple ...

Ericsson sues Apple over patent violations

15 hours ago

Swedish telecoms group Ericsson announced Friday a lawsuit against Apple claiming that the US tech giant continued to use its technology in iPhones and other wireless devices after refusing to renew a licencing ...

Stock market shrugs off net neutrality vote

22 hours ago

(AP)—The stock market largely shrugged off the Federal Communications Commission's vote to impose tougher rules on broadband providers like Comcast, Verizon and AT&T to prevent them from creating paid fast lanes for the ...

Judge orders suspension of WhatsApp in Brazil

Feb 26, 2015

(AP)—A judge says he has ordered the suspension of the globally popular instant messaging system WhatsApp across Brazil because it has allegedly failed to help in an investigation.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.