TAIPEI: Taiwan plans to open up its auto sector and part of its flagship technology industry to investments from the mainland, an official said yesterday, as both sides forge closer trade ties to spur their economies.

Emile Chang, deputy executive secretary of the investment bureau at the economics "ministry", told Reuters that the auto sector is on the list of sectors Taipei plans to open up to mainland investors. However, she added, "This is our initial plan and it's not finalized yet."

Chang said Taiwan would also allow the mainland to invest in part of the wide-ranging information technology industry and herbal medicine sector, but added details needed to be ironed out and the plans would still need to be approved by higher authorities.

"Taiwanese businesses, many of which have long complained about the primarily one-way flow of funds, now see a strong need to attract capital from offshore in order to survive the global crisis," Moody's said in a report.

"Meanwhile, the removal of barriers in cross-border investment also benefits mainland investors as they now enjoy the added option of a relatively more familiar market."

Last week, Beijing said it was setting up rules to let its companies invest in Taiwan from May, while China Mobile, the world's largest mobile carrier by users, said it planned to buy a 12 percent stake in Taiwan's Far EasTone.

China Daily - Reuters

(HK Edition 05/06/2009 page16)