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Taiwan to scrutinize mainland investment via Hong Kong

Crackdown aims to block indirect capital flows that threaten island tech

Recent turmoil in Hong Kong has put Taiwan on edge.   © Reuters

TAIPEI -- Taiwan will strengthen restrictions on investment from mainland China as early as October, cracking down on indirect investments that help enhance Beijing's economic clout over the island. 

Indirect Chinese investments made through companies located in Hong Kong or elsewhere have been on the rise, which Taiwan worries could pose a threat to national security and lead to Taiwanese technology being leaked to the mainland.

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