Relocating production of 31 items from Taiwan to Mainland China is prohibited. Ethylene was one of them. It has now been excluded from Taiwan’s list of those products, the production of which may be relocated to China in order to save costs. Taiwan's Executive Yuan or Cabinet decided on Sept. 16 to lift bans against ethylene plants and allow related production to be relocated to Mainland China. The possible reason could be that Taiwanese companies have experienced difficulties setting up gas and petrochemical plants at home, as they continue to be faced with opposition from local residents and environmentalists. The Cabinet has decided that Taiwanese shareholders must retain over 50% stake in the mainland production facilities. The headquarters must be based in Taiwan and the company must not relocate its cash to China; furthermore the company must not lay off its Taiwan-based employees and Taiwan must be the priority market for the company's products.
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