China Mobile Blocked from Taiwan Investment

China Mobile has cancelled plans to buy a minority stake in the Taiwan based mobile network, Far EasTone after the Taiwanese government refused to lift ownership restrictions.

China Mobile had been planning to pay US$600 million for a 12 percent stake in the Taiwan mobile network. The deal was originally announced all the way back in April 2009.

Investments by Chinese firms in Taiwan has been a contentious issue, particularly in industries sometimes seen as strategic to the nation, such as telecommunications.

The companies announced that the investment would be replaced by a framework for business cooperation instead, but may consider a financial investment again if the government lifts its restrictions.