The transportation ministry is working to allay concerns that a new trade agreement would allow Chinese shipping companies to buy land in Taiwan. The agreement is the controversial Cross-Strait Service Trade Agreement, which was the target of a massive protest in Taipei on Sunday.
Deputy Transportation Minister Chen Jian-yu spoke about the issue at the legislature’s transportation committee on Monday. He was answering questions from Legislator Lin Kuo-cheng, from the ruling Kuomintang (KMT). Lin said that local shipping companies were concerned that opening up the shipping sector to China could lead to Chinese investors purchasing large plots of land in Taiwan for storing freight. But Chen said that’s not the case. He said that Chinese investors would only be allowed to rent storage space.
“When it comes to the transportation sector, they are only allowed to be part of a joint venture, and they cannot buy land. So no, there is no problem with land," said Chen.
Chen said that the agreement does not allow Chinese investment in bus transportation and taxi companies. As for shipping, he said talks were already held back in 2007 to open up that sector, in conjunction with Taiwan’s entry into the WTO.
Chen said that while international companies like UPS, DHL and one Hong Kong company have entered Taiwan’s market, to date, no Chinese shipping companies have set up operations here.
As for concerns that large state-owned enterprises from China would take over Taiwan’s freight and shipping industries, Chen said that there are other control mechanisms in place to prevent price wars. He said those include the Investment Commission, Highway Act and fair trade laws.