The Financial Times reports:

Ms Tsai would not specify which industries she was referring to but Taiwanese companies have been waiting for years for the government to lift restrictions on mainland investments in sectors such as banking, petrochemicals and chip-packaging. Apart from sectoral bans, businesses are restricted by a ceiling that limits mainland investments by listed companies at 40 per cent of their net worth. Ms Tsai said the government had started to discuss changes to the ceiling but this had not reached the stage of policy considerations yet. Ms Tsai, who is seen as the architect of many conservative policies on cross-Strait trade and investment in the 1990s and heads a cabinet panel on economic issues, defended the tighter controls.

“This will not result in cutting off investment in China but will slow it down a little, at best,” she said. “It aims to enable Taiwan’s economy to react faster to changes in China.”

The government plans to lower the percentage of China investments in Taiwan’s total outward foreign direct investment in order to reduce the island’s economic dependence on its politically hostile neighbour.

The policy is part of a larger drive to diversify Taiwan’s investments away from its mortal enemy across the Strait. It was by-lined Kthrin Hille, who managed to go a whole article without hacking on Chen Shui-bian, for once.