Radio Taiwan International
Date: 2018-03-19

There’s growing concern in Taiwan about the “magnet effect” of the Chinese market

Financial Supervisory Commission Chairman Wellington Koo (CNA photo)

attracting capital away from the Taiwan market. That’s in light of Beijing’s move to give special treatment to Taiwanese companies that it sees as strategically important.

Earlier this month, China approved the Shanghai listing of a subsidiary of Taiwan’s Foxconn, the world’s largest contract electronics maker. The company is hoping that listing the subsidiary – Foxconn Industrial Internet Co. Ltd. (FII) – can help fund eight projects worth 27.3 billion RMB ($4.31 billion).

The chairman of Taiwan’s Financial Supervisory Commission, Wellington Koo, responded to concerns on Monday in a legislative committee. He said that in an era of globalization, a small, open economy like Taiwan has to deal with the impact of capital flow from many countries. Koo said that China’s lightning speed approval of FII’s IPO in just 36 days won’t have a major impact.    [FULL  STORY]