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According to Letter No. Jin-Guan-Jheng-Cyuan-Zih 0990067043 issued by the Taiwan Financial Supervisory Commission, dated 27 December 2010, (mainland) Chinese investors are banned from making investments in the real estate development, construction, or real estate brokerage industry. But the Taiwan Ministry of the Interior is now contemplating and proposing opening Taiwan's construction industry to Chinese investment. However, to minimize the deregulation's impact on the local construction industry, it is proposed that at the initial stage, Chinese investments should not exceed 10% of the total outstanding shares issued by the construction company that is the investment target, and Chinese investors are not allowed to operate any construction company.
Meanwhile, Taiwanese investment in China's real estate development industry is subject to certain restrictions, and Taiwanese investment in China's infrastructure construction is prohibited. However, undertaking contracts for building construction or other civil engineering projects is permissible.
