Oct. 30 (Bloomberg) -- Taiwan may ease restrictions on technology investments in China, Presidential office spokesman Wang Yu-chi said in a phone interview today.

Taiwan might allow its companies to invest on the mainland if similar technologies already exist there, Wang said today, confirming comments made by President Ma Ying-jeou yesterday and reported by the Wall Street Journal.

A relaxation of investment restrictions in China will allow Taiwanese companies to increase production in the world’s most populous nation. Taiwan’s current rules are aimed at averting a loss of technology and money to the mainland, which regards the island as part of its territory.

Taiwan is evaluating a plan to let local liquid-crystal display and semiconductor companies set up plants in China and buy stakes in businesses there, Huang Hsien-lin, an official at the Ministry of Economic Affairs, said Sept. 29. He declined to give a timeframe for such a move.

The island’s government opened up 64 sectors in manufacturing, 25 in services and 11 public infrastructure projects to Chinese investment in June.

Tensions between Taiwan and China eased after Ma abandoned his predecessor’s pro-independence stance when he took over in May last year.

Taiwan Semiconductor Manufacturing Co., the world’s biggest custom-chip maker, and AU Optronics Corp., Taiwan’s largest maker of liquid-crystal displays, both have facilities in China using older technology and producing less-advanced products than are available in Taiwan.

Semiconductor investment by Taiwan firms in China is allowed on the condition that technology there is at least two generations behind what is available on the island, and must first meet Taiwan regulatory approval.

To contact the reporter on this story: Weiyi Lim in Taipei at wlim26@bloomberg.netTim Culpan in Taipei at tculpan1@bloomberg.net.

Last Updated: October 29, 2009 22:03 EDT