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Taiwan rejects HK firm’s skycraper bid over China ‘security concerns’

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Taiwan has vetoed a $2 billion bid by a Hong Kong-led consortium to build a twin skyscraper in Taipei citing national security concerns, arguing the company is too heavily influenced by mainland China.

Hong Kong-listed Nan Hai Corporation had successfully bid to build the "Taipei Twin Towers" along with Malaysian property developer Malton Berhad in a TW$60 billion deal that was billed as the city's biggest construction project in years.

But on Wednesday Taiwan's Ministry of Economic Affairs blocked the project citing Nan Hai's links with China.

"Nan Hai's close ties with China is a grave threat to (Taiwan's) national security if it were allowed to develop," Yang Shu-ling, spokesperson for the ministry Investment Commission, told AFP.

Nan Hai Development Ltd in a written statement said it was baffled by the decision and that it is looking into legal recourse.

"We believe it (the decision) is politically motivated," the statement said.

The Investment Commission noted that half of Nan Hai's management and board of directors are Chinese nationals, adding it was concerned the company could be "influenced by mainland policies".

The planned 76-storey site was particularly sensitive, Yang added, because it was located next to Taipei's main station and metro systems.

"This involves the issue of national security because of its close proximity to greater Taipei's important transportation hub for metro, high speed rail, railway trains and buses," Yang added.

Taiwan retains huge business links with China but relations between the two governments have frayed since the 2016 election of President Tsai Ing-wen who does not recognise Beijing's "One China" policy.

Beijing has since cut off communication with her administration, ramped up military drills and poached some of Taiwan's dwindling allies.

The island has been a self-ruled de facto nation in charge of its own affairs and borders for the last 70 years.

But Beijing maintains Taiwan is part of its territory and has never given up its threat to retake it, by force if necessary.

Tsai is seeking a second term at elections in January and is campaigning on a more Beijing sceptical ticket than her opponents, who favour better ties with the mainland.

Taipei mayor Ko Wen-je, an independent, warned on Thursday that the decision might put off foreign investors.

"This has broader implications" echoed Lin Tso-yu, land economics professor at Taipei's National Chengchi University.

"The rules for investment should be more transparent and clear for investors to follow," Lin said.

Taiwan has vetoed a $2 billion bid by a Hong Kong-led consortium to build a twin skyscraper in Taipei citing national security concerns, arguing the company is too heavily influenced by mainland China.

Hong Kong-listed Nan Hai Corporation had successfully bid to build the “Taipei Twin Towers” along with Malaysian property developer Malton Berhad in a TW$60 billion deal that was billed as the city’s biggest construction project in years.

But on Wednesday Taiwan’s Ministry of Economic Affairs blocked the project citing Nan Hai’s links with China.

“Nan Hai’s close ties with China is a grave threat to (Taiwan’s) national security if it were allowed to develop,” Yang Shu-ling, spokesperson for the ministry Investment Commission, told AFP.

Nan Hai Development Ltd in a written statement said it was baffled by the decision and that it is looking into legal recourse.

“We believe it (the decision) is politically motivated,” the statement said.

The Investment Commission noted that half of Nan Hai’s management and board of directors are Chinese nationals, adding it was concerned the company could be “influenced by mainland policies”.

The planned 76-storey site was particularly sensitive, Yang added, because it was located next to Taipei’s main station and metro systems.

“This involves the issue of national security because of its close proximity to greater Taipei’s important transportation hub for metro, high speed rail, railway trains and buses,” Yang added.

Taiwan retains huge business links with China but relations between the two governments have frayed since the 2016 election of President Tsai Ing-wen who does not recognise Beijing’s “One China” policy.

Beijing has since cut off communication with her administration, ramped up military drills and poached some of Taiwan’s dwindling allies.

The island has been a self-ruled de facto nation in charge of its own affairs and borders for the last 70 years.

But Beijing maintains Taiwan is part of its territory and has never given up its threat to retake it, by force if necessary.

Tsai is seeking a second term at elections in January and is campaigning on a more Beijing sceptical ticket than her opponents, who favour better ties with the mainland.

Taipei mayor Ko Wen-je, an independent, warned on Thursday that the decision might put off foreign investors.

“This has broader implications” echoed Lin Tso-yu, land economics professor at Taipei’s National Chengchi University.

“The rules for investment should be more transparent and clear for investors to follow,” Lin said.

AFP
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With 2,400 staff representing 100 different nationalities, AFP covers the world as a leading global news agency. AFP provides fast, comprehensive and verified coverage of the issues affecting our daily lives.

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