Taiwan’s businesses have called for the government to lift its ban on Taiwanese investment in naphtha crackers in China. There is an increasing pressure on the government to lift the ban since the planned Kuokuang Petrochemical Technology Co. naphtha cracker complex got scrapped under pressure from environmentalists. However, as reported by CNA, the minister of economic affairs said that before it reviews its policy, the government will want to see "whether the other side will show some flexibility first." The government views China's restrictions on foreign investment in the petrochemical industry as the key problem. Under Beijing's rules, foreign investors are not allowed to build naphtha crackers in China unless they cooperate with local enterprises, with the Chinese side holding a controlling stake in any joint venture.