Taipei, Oct. 28 (CNA) Taiwan approved a Chinese investment project Monday in which a Hong Kong firm will buy out the Taiwanese company that sells Chinese Xiaomi brand smartphones on the island.
The project proposed by Xiaomi H.K. Ltd., a Hong Kong subsidiary of Beijing-based Xiaomi Inc., to buy out Xiaomi Taiwan for NT$3.76 million (US$128,000), was given the green light by the Investment Commission under the Ministry of Economic Affairs.
It marks the first time a Chinese smartphone brand operator has been permitted to have a presence in Taiwan without going through a local company.
Xiaomi H.K. has proposed to purchase all Xiaomi Taiwan shares held by Taiwanese investors, according to the Investment Commission.
The commission said Xiaomi H.K. will be allowed to provide repair and maintenance services in Taiwan but will be barred from offering online services. It will also not be allowed to sell telecommunication facilities, servers or core network devices.
The operations of the Hong Kong company must be in line with relevant Taiwanese regulations, including the Trade Secrets Act and the Personal Information Protection Act, the commission said.
Xiaomi, touted as the premium phone for people who cannot afford expensive smartphones, began sales in Taiwan in April. Sales of the device in China reached 7.19 million units in 2012, generating 12.65 billion yuan (US$2 billion) in revenues.
(By Lin Meng-ju and Elizabeth Hsu)