Taiwan approves first Chinese smartphone brand to offer services directly

The Taiwanese government gave a green light to a Chinese investment project, proposed by a Hong Kong firm, to buy out a Taiwanese company selling Chinese Xiaomi brand smartphones domestically.
Written by Chiu Yu-Tzu, Contributor

An investment project proposed by Xiaomi H.K. Ltd, a Hong Kong subsidiary of Beijing-based Xiaomi Inc, to buy out Xiaomi Taiwan for NT$3.76 million (US$128,000), has been approved by the Investment Commission under the Ministry of Economic Affairs, the state-run Central News Agency reports.

This is the first time that a Chinese smartphone brand operator has been allowed to have a presence in Taiwan without going through a local company. 

According to the Commission, the operations of Xiaomi H.K. in local market will involve the provision of repair and maintenance services in Taiwan. It will not be allowed to offer online services in Taiwan. In addition, its business services to sell telecommunication facilities, servers or core network devices will be prohibited.

The Commission says that the operations of Xiaomi H.K. must be in line with Taiwanese regulations, including the Trade Secrets Act and the Personal Information Protection Act.

Starting April, the Xiaomi 2s smartphone has been available on the market in Taiwan through the collaboration with Far EasTone Telecommunications, one of Taiwanese companies providing telecommunications and digital application services.  In April, the prices set for the Xiaomi 2s 16GB and 32GB, NT$9,499 (US$335) and NT$11,199 (US$380) respectively, caught local consumers’ eye.

Having sensed the market potential in Taiwan, Xiaomi president Lin Bin visited Taiwan in September, vowing to build good relationship with Taiwanese suppliers

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