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April 1, 2005
China-Taiwan Issues Fri., April 1, 2005, 8:07 AM
I note that a China stock I like, Semiconductor Manufacturing International Corp (NYSE: SMI), is now a pawn in the political squabbles between China and Taiwan. If you are on the look-out for anecdotal evidence that there may be troubles afoot, this would be a story to watch.
SMIC CEO regrets Taiwan govt order for him to withdraw China investment
2005/04/01 19:29
SHANGHAI (XFN-ASIA): Richard Chang, formerly a Taiwan citizen when he founded China's Semiconductor Manufacturing International Corp (SMIC), said he is puzzled and regrets the decision by the Taiwan government to fine him 5.0 million twd for his investment in China and to withdraw such investment.
Now a US citizen after he converted in 2002, Chang argues that he should be exempt from such penalties.
Taiwan prohibits certain China-bound investments, with restrictions generally based on the technology and scale of the amount being invested.
Taiwan's Ministry of Economic Affairs said that Chang was a Taiwancitizen when in December 2000 he invested in and set up SMIC in China. He is now chairman, president and chief executive officer of the Hong Kong-listedcompany.
"I feel puzzled and regret the decision of the Taiwanese authorities toimpose a fine on me. I will retain legal counsel to properly handle this matter. I will continue to devote myself to work diligently in SMIC and contribute to our investors, customers, and employees," he said in a statement.
Chang also criticized Taiwan's restrictions on investment in China saying: "As a professional in the high tech industry, I believe there are nonational boundaries in technology."
He added that he had been involved in the construction and management of several commercial foundries in the US, Singapore, Europe and Greater China.
(1 usd = 31.50 twd)
Posted by Posted by Bill Cara on April 1, 2005 08:06:54 AM | Category: 45 Info Technology , China