China says investment will help unification with Taiwan (updated)

Powertech Technology

11/03/2017 06:40

(Recasts, adds quotes, details, byline) 
    By Ben Blanchard 
    BEIJING, March 11 (Reuters) - China's Industry Minister, 
Miao Wei, said on Saturday that investment across the Taiwan 
Strait can help achieve China's aim of achieving unification 
with the self-ruled island, and called for Taiwan to be more 
open to Chinese businesses. 
    China deems Taiwan a wayward province to be taken back by 
force if necessary, though proudly democratic Taiwan has shown 
no interest in being ruled by autocratic China.  
    Defeated Nationalist forces fled to Taiwan in 1949 after 
losing a civil war with the Communists, but since a thaw began 
in the 1980s Taiwanese businesses have poured money into China, 
drawn by a common culture and language. 
    Chinese companies have also begun investing in Taiwan, but 
have run into problems since last year's election of Tsai 
Ing-wen as president from the Democratic Progressive Party, 
which espouses China's formal independence, a red line for 
Beijing. 
    China is deeply suspicious of Tsai, though she says she 
wants to maintain peace with China. 
    Speaking on the sidelines of the annual meeting of China's 
parliament, Miao said economic cooperation between both sides of 
the Taiwan Strait had made huge progress in the last three 
decades since the two began their detente. 
    China welcomes Taiwan chip companies to invest in China, he 
added. 
    "Of course, we hope that openness is two-sided, not 
one-sided," Miao said. 
    "We encourage and support Taiwanese companies to develop in 
the mainland, and at the same time Taiwan should have an even 
more open attitude towards mainland companies entering Taiwan," 
he added. 
    "This way industry on both sides of the Taiwan Strait can 
join hands to develop, which is good for both economies, and is 
also extremely helpful for promoting the unification of our two 
sides and achieving the aim of one China," Miao said. 
    While his comments were broadcast live on state television, 
the section about promoting unification was not included in the 
official online transcript of his news conference, an ommission 
that was likely a sign of China's sensitivity about being seen 
to use its companies to political ends. 
    Long-standing political tension between the neighbours has 
seen Taiwan put restrictions on Chinese investments in its 
prized semiconductor sector, with an eye to protecting 
intellectual property and trade secrets. 
    At least three major deals have fallen through since Tsai 
won last year's election in Taiwan. All of them involved Chinese 
state-backed giant Tsinghua Unigroup, which planed to invest 
three chip test and packaging firms based in Taiwan: ChipMOS 
Technologies Inc  8150.TW , Siliconware Precision Industries Co 
Ltd (SPIL)  2325.TW  and Powertech Technology Inc  6239.TW . 
    In December 2015, while on the campaign trail, Tsai called 
Tsinghua Unigroup's investment plans a "huge threat" to the 
island's semiconductor industry. urn:newsml:reuters.com:*:nL3N1442KB 
 
 (Editing by Simon Cameron-Moore) 
 ((ben.blanchard@thomsonreuters.com; +86 10 6627 1201; Reuters 
Messaging: ben.blanchard.thomsonreuters.com@reuters.net)) 
 
Keywords: CHINA PARLIAMENT/TAIWAN