Security Experts:

Taiwan to Review Infrastructure Opening to China

TAIPEI - Taiwan legislators on Monday demanded a thorough evaluation of sensitive sectors in which China has invested or are open to Chinese investment.

The move comes as Taiwan lifts restrictions on investments by China as the two former enemies forge closer economic ties.

Parliament's defense committee passed a resolution from the ruling Kuomintang party calling on security authorities to follow similar moves in the United States and Britain.

"The National Security Bureau should work together with the Ministry of Defence and relevant units to conduct a comprehensive evaluation as to which infrastructure items should not be invested (in) by mainland companies," the resolution said.

The move came after the US House Intelligence Committee said it had launched an investigation into the national security threat posed by Chinese-owned telecommunications firms Huawei and ZTE.

The committee warned that Beijing could use those firms for economic or military espionage -- allegations flatly rejected by China and the companies.

Taiwan's economy ministry in March relaxed its controls on items Chinese traders could invest in. The island's telecoms sector is off limits from mainland investment.

Under the new measures, Chinese investors will be allowed to buy up to 50 percent of shares in key public infrastructure including subways, light rail systems, bridges and tunnels, as well as cultural and educational facilities.

They will also be allowed to invest in conference centres, national parks, cable car systems and six other categories without restrictions, the ministry said.

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