TAIPEI: Taiwan plans to enhance scrutiny over investment from Hong Kong to prevent illicit money from mainland China “infiltrating” its economy, after Beijing imposed a new security law on the Asian financial hub, a source with direct knowledge of the matter said.
The new legislation targets crimes of secession, subversion, terrorism and collusion with foreign forces with up to life in prison and allows people to be sent to mainland China for trial.Beijing denies stifling the city’s freedoms or autonomy and has condemned Taiwan’s plans to help people there. “We hope that money from Hong Kong and Macau comes over here, but we don’t want Chinese money to benefit,” the source added.
Official investment from Hong Kong into Taiwan was worth US$150 million in the first five months of this year, 4% of total overseas investment in Taiwan. Mainland Chinese investment is already tightly controlled in Taiwan, though the source said they will be “taking stock” of how much there actually is in eight key sectors, including banking, energy, telecommunications and science parks.