China and Taiwan are well positioned in developing state-of-the-art technology for semiconductors and displays and to make joint investments as they move toward bringing their economies closer.
On Dec. 21, the Wall Street Journal quoted an official of the Taiwanese government, "That restrictions on Taiwanese companies investing in cutting-edge technology industries in mainland China will be eased. Taiwanese Minister of Economic Affairs Yen-Shiang Shih said, "A plan to alleviate restrictions on investing in high-tech industries in mainland China will be unveiled no later than early next year."
On Dec. 22, top negotiators from China and Taiwan held a fourth round of trade talks in the central Taiwanese city of Taichung and reached agreement on three agendas of the cross-strait Economic Cooperation Framework Agreement or ECFA, which outlines the standard of industrial products, measures, and certification cooperation.
In addition, top negotiators from China and Taiwan discussed on ways to remove tariffs, avoid double taxation, and open their financial markets. It has been expected that the rendezvous of Taiwanese technology and Chinese capital will be all over the two nations once the two markets open up at full throttle. When it comes to high-tech sectors such as telecommunications, contractors, production of semiconductors, and displays, the Taiwanese government has so far banned technology transfer, the construction of factories in mainland China, and prevented the amounts of investment from exceeding those in Taiwan. Since Taiwan's President Ma Ying-Jeou took office, his efforts to mend fences with china sparked off anticipation that Taiwan would ratchet up the level of cooperation between the two nations.
The Wall Street Journal predicted that the Taiwanese government would have no other option on the table, but to relax restrictions on investment in mainland China in its attempt to counterbalance the ever-growing market dominance of major companies -from the U.S. South Korea, and Japan- in China's high-tech market.