New regulations unveiled Thursday . . .
Taiwan unveiled new China-focused investment regulations on Thursday. The regulations, expected to be implemented later this year, will allow officials to screen Mainland Chinese investments, as well as investors behind Hong Kong and Macao companies looking to invest in Taiwan. The new regulations will also empower the Taiwanese government to check Chinese investors’ backgrounds to identify ties to the Peoples Liberation Army or the Chinese Communist Party.
Supporting a united front . . .
Through its new investment regulations, Taiwan hopes to align itself with other democracies (led primarily but the U.S.) in their united front against Beijing, while increasing its presence on the global stage. Beijing’s rapid re-emergence as a global power, bolstered by its technological advances, has alarmed much of the world, especially the U.S. In response, Washington has launched a campaign to limit or ban China’s access to cutting-edge research and markets in the U.S. and other democracies. Taiwan features prominently in the U.S. strategy to counter China as it is home to leading high-tech companies that supply firms in both China and the U.S.
Leveraging its post-COVID soft power . . .
Taiwan has been successful in containing COVID-19, tracking only 487 cases and seven deaths as of today. Taipei has been actively promoting its success on the international stage as one driven by an open, democratic society. Taipei has also been further distancing itself from Beijing, which is facing unfavourable scrutiny following its poor post-COVID outbreak PR campaigns and its crackdown on Hong Kong via the new National Security Law. Taiwan, in embracing a U.S.-led campaign against Beijing, sees a rare opportunity to increase its international engagement with other peers, an area that has long been limited by China.
- Financial Times: Taiwan looks to tighten investment rules for China
- Nikkei Asian Review: Taiwan unveils new rules to tighten Chinese investment screening
- South China Morning Post: Taiwan tightens up on investment from mainland China