Chunghwa sets up China subsidiary

Taiwan incumbent Chunghwa Telecom will establish a business on the Chinese mainland.

 

The new business will have $6 million in capital and start operations in the first quarter of 2011, focusing on 3G value added services and IT services such as energy conservation and ITS (Intelligent Transportation Systems), Chunghwa said. 

 

Chunghwa, which was previously government-owned, but now listed on the Taiwan Stock Exchange, has representative offices in Beijing and Shanghai.

 

It also runs a joint venture with the Xiamen government through its investment arm, Chunghwa Investment Co. Ltd.

 

It said it regarded the China market as a “prior target,” and anticipates a substantial opportunity to gain growth momentum from outside of Taiwan.

 

China reserves direct investment in its infrastructure for state-owned companies, allowing non-mainland businesses into some value-added service areas.