Taiwan: MOEA to Review China Investments for Potential Information Security Concerns

During the interpellation session held on 22 October 2020, Chiu Yi-Ying (“Chiu”), a member of the Legislative Yuan, pointed out that the currently permitted industries for China investors include “retail sales of telecommunications equipment in specialized stores” and “retail sales via mail order houses or via the Internet”, and opined that Chinese investments in these industries raise information security concerns. Chiu further suggested that all telecommunications equipment brands from China should be reviewed thoroughly from an information security perspective and should be regulated properly.

Mei-Hua Wang (“Wang”), Minister at the MOEA (Ministry of Economic Affairs), responded that, as information security is a material issue with which Taiwan should monitor, MOEA will discuss the issues raised by Chiu with the Department of Cyber Security (“DCS”) and relevant authorities.

Chiu also pointed out that the draft amendments to the Measures Governing Investment Permit for the People of the Mainland Area (“GIP”) may also give rise to concerns as to how “Chinese investment” should be defined.

Minister Wang indicated that the draft amendments of the GIP publicly announced on 26 August 2020 will remain published until 26 October 2020 so that people can comment on the same to the MOEA. Thereafter, the MOEA will send the draft to other relevant authorities, such as Mainland Affairs Council and the Executive Yuan, for further deliberation.

As of 6 November 2020, MOEA has not released any update of the draft amendments of the GIP and the schedule for further discussion of the draft amendments of the GIP is not known.