Taiwan to China: Send Cash

More progress on cross-Straits relations: Taiwan has opened its markets to mainland Chinese investment. The new rules are in part a testament to the power of Chinese cash reserves (Taiwan’s economy shrank 10 percent year-on-year in the first quarter of 2009). But they also represent a significant, if pragmatic, step towards Taiwanese President MaYing-Jeou’s goal of closer economic ties, which have to date beenmainly one-way (from Taiwan to China). “Institutional” investment — by which I understand state-sponsored, but I might be mistaken — is limited to 10 percent of stock ownership, while limits on corporate ownership will be decided on […]

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