Taiwan plans to enhance scrutiny over investment from Hong Kong to prevent illicit money from mainland China "infiltrating" its economy, after Beijing imposed a new security law on the Asian financial hub, a source with direct knowledge of the matter said.
Taiwan, claimed by China as its own, has traditionally treated investment from Chinese-run and supposedly autonomous Hong Kong and Macau as foreign investment, without the same controls and limits it has on money coming from mainland China.
But Beijing's contentious new security legislation for Hong Kong has been criticized by many Western nations and rights groups as undermining the city's autonomy, forcing democratic Taiwan to reassess how it does business with Hong Kong.