Mainland Chinese investors barred from owning Taiwan start-ups

In addition, all Chinese investments in Taiwan must be reviewed and approved by the MOEA's investment commission, Chang Ming-pin, acting executive secretary of the commission, told local media.

Last week, Chinese e-commerce giant Alibaba Group said it plans to launch a NT$100 billion ($316 million) non-profit fund that will be used to boost entrepreneurship among young people in Taiwan. The new rule is in part a response to concerns that Alibaba may use VC to lure Taiwan-based talent. Start-ups must be controlled by Taiwanese nationals or headed by non-Chinese, Chang said.

Last week, Taiwan ordered Alibaba to withdraw or transfer its holdings from its operation in Taiwan within six months after it was rule to have violated investment rules pertaining to Chinese companies. It was also fined NT$120,000.

Alibaba set up its Taiwan branch in 2008 under a wholly-owned Singapore-registered entity. At that time, Taiwan did not allow Chinese direct investment or subsidiaries of Chinese companies to enter the territory. Although Alibaba holds less than 30% of the Taiwan entity, it controls the company's hiring and finances.

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• Topics
• Greater China
• Venture
• Regulation
• Early-stage
• China
• Taiwan (China)
• Venture
• e-commerce
• seed
• regulation
• Alibaba Group