Taiwan to limit Chinese investment in core infrastructure

Taiwan to limit Chinese investment in core infrastructure

Summary: Taiwan's Foreign and National Defense Committee has passed a resolution to evaluate which parts of the country's core infrastructure should be excluded from China companies' involvement.

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The Taiwanese government will be looking into its core infrastructure to decide which areas to restrict Chinese investments after a top official from the National Security Bureau (NSB) called for additional scrutiny on such deals.

A report by the Taipei Times Tuesday cited NSB Director Tsai Der-sheng saying the agency supports placing "some kind of restrictions and limitations" on investment by Chinese companies in the country's information and telecommunications infrastructure.

His comments were prompted by the stance taken by the U.S. Congress, which urged local businesses and government to refrain from doing business with Chinese telecoms equipment makers Huawei Technologies and ZTE, it added.

The Foreign and National Defense Committee subsequently passed a resolution stating the NSB should work with Taiwan's Ministry of National Defense and other agencies to evaluate which parts of the infrastructure should be excluded from Chinese investments, the report noted.

Taiwan's increased scrutiny of Chinese companies and their roles in sensitive industry verticals such as telecommunications follows that of other countries, including Canada, Netherlands, Australia and India. Governments in these countries have either barred or are applying stricter rules in allowing Chinese tech companies from participating in sensitive, national IT projects.

Topics: Security, Government Asia, China

Ellyne Phneah

About Ellyne Phneah

Elly grew up on the adrenaline of crime fiction and it spurred her interest in cybercrime, privacy and the terror on the dark side of IT. At ZDNet Asia, she has made it her mission to warn readers of upcoming security threats, while also covering other tech issues.

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