Taiwan's government has placed stringent controls over who can and cannot invest in their country - particularly when it comes to the Chinese. Previously, Chinese companies were limited to 10% ownership in local companies and 50% ownership in joint ventures in Taiwan. Although the Chinese are still barred from taking controlling (greater than 50%) stakes or appointing managers in their investments, the ceilings are being raised - particularly in the LCD and computer chips space. Even still, all investments must be approved by Taiwan regulators.
I thought this was interesting because I, for whatever reason, feel that there is this stereotype that Asian cultures are bit further along the 'controlling spectrum' than the rest of the world (although people probably see Americans the same way). The article didn't expound in great detail as to what problem the Taiwan government is trying to curb, but I suspect they are afraid of losing business control within their country. Does anyone have some insight into why Taiwan is keeping such a tight grip on their business ownership?
Jeff Carroll
http://www.reuters.com/article/2012/03/20/us-taiwan-china-investment-idUSBRE82J0CD20120320
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