In a highly critical report, the US-Taiwan Business Council called on Taipei to quickly formulate “new comprehensive guidelines” to cover Taiwanese technology investment in China.
The council said the Taiwanese government was maintaining a “stranglehold” on technology investment in China.
“The government needs to consider comprehensive regulations that would allow Taiwan companies to, at minimum, invest in and use the same technologies other international companies are already using in China,” the council said in a statement.
It comes as part of the council’s annual Taiwan Semiconductor Report.
“The Taiwan government should release a comprehensive technology investment framework that provides for liberalized investment regulations under an export control regime modeled on US technology trade rules,” council president Rupert Hammond-Chambers said.
“Such a framework would cover all areas of technology trade and investment, rather than these piecemeal regulations released for specific sectors, and would let Taiwan companies compete on a level playing field. The Taiwan government continues to be reactive and not proactive to the needs of its technology sector,” he said.
Previous guidelines for investment in China expired five years ago and since then, the council said, Taiwan had “squandered” several years in which its technology companies could have gained critical advantages over their Chinese and South Korean competitors.”
While there has been some easing of regulations for technology investment, the council said they did not “adequately broaden investment opportunities for the Taiwan semiconductor industry as a whole.”
The US-Taiwan Business Council is a non-profit association founded in 1976 to improve trade and business relations between the US and Taiwan.