TAIPEI
- The continued decline of
foreign capital in Taiwan is related to the
negative growth of world investment, but it also has to
do with Taiwan's high investment in mainland China, Taiwanese Vice
Economics Minister Shih Yen-hsiang said.
Shih made the
remarks in a legislative committee meeting to review
regulations concerning overseas Chinese and foreigners
investing in Taiwan, during which legislators across
the political spectrum questioned why Taiwan needs to
revise the law to restrict mainland capital entering
Taiwan when foreign capital coming to Taiwan is on the
decline.
Legislator Chiu Yi of
the opposition People First Party said overseas-Chinese and
foreign investment in Taiwan has continued to decline,
noting that it decreased by 32.95 percent in 2001 and
dropped by 36.2 percent in 2002. The figure was also
down by 40 percent in the first two months of this year,
Chiu added.
"The decline is alarming," Chiu
said, adding that Taiwan should make good use of its
strategic position to lure foreign investment.
Lee Chun-yi of the ruling Democratic Progressive
Party said that when Taiwan and the mainland are
engaging in competition for capital, talent, technology
and products, the government should not harbor fear of
mainland capital and should not revise the law to
restrict such capital.
Shih concurred that
foreign investment has declined, which he attributed to
the sluggish global economy, Taiwan's high investment in
the mainland and restrictions on foreign investment.
If the exchanges between the two sides of the
Taiwan Strait can be further facilitated, it will help
Taiwan lure foreign investment, Shih said, adding that
more transparent policy would also help attract foreign
investment.
On the restrictions on
mainland capital, Shih said the issue involves cross-Strait
policy and should be the responsibility of the Mainland
Affairs Council (MAC).
However, Legislator
Lee said the MAC already pokes its nose into too many
affairs and suggested instead that the Investment
Commission under the Ministry of Economic Affairs should
be in charge of the review of mainland capital.
