The possibility of more relaxed trade between Mainland China and Taiwan has become a topic of conversation in the wake of an election in Taiwan that Kuomintang (KMT) party control of the legislature there.

The issue is two sided. On the one hand there's the question of how much Taiwanese businesses are allowed to invest in the Mainland. Currently, China-bound investment is capped at 40 per cent of a local company's net worth, according to . Regulatory authorities in Taiwan are looking at alternative ways to measure a company's net worth. The idea seems to be that if a company's net worth can be assessed upward, the amount that it can invest in the Mainland will increase without any changes in the current policy or law.


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