Taiwan to Phase Out Restrictions on Foreign Stock Ownership

Washington, DC, February 27, 1998 - On February 20, 1998, United States Trade Representative Charlene Barshefsky announced that the United States had reached a comprehensive market opening agreement with Taiwan in connection with Taiwan's application to become a member of the WTO. Taiwan's accession to the WTO is contingent upon reaching similar agreements with other WTO trading partners.

In financial services, Taiwan will make commitments to continue to allow foreign firms to own up to 100 percent of a Securities Investment Trust Enterprise (SITE), subject to certain restrictions, and up to 100 percent of a Securities Investment Counseling Enterprise (SICE). Taiwan has also agreed to phase out the restrictions that currently prevent foreign investors from owning more than 10 percent individually or 25 percent in the aggregate of the issued stock of any company whose shares are listed on Taiwan's securities market. Taiwan has agreed that prior to January 1, 2001, these percentages will be increased to 15 percent and 30 perecent, respectively, and that they will be eliminated completely thereafter. That is, as of January 1, 2001, Taiwan will no longer impose any restrictions on foreign investment in listed stocks.