The decision follows a ban on settlement on the island by Hong Kong residents with mainland Chinese citizenship and who work for the mainland government, political parties or military.
Taiwanese officials said on Thursday that the new regulations were meant to close loopholes and were in line with tighter rules in the United States and Europe on mainland Chinese investment.
“We have amended Article 3, 4 and 6 of Regulations Governing the Permission of Investment by Nationals in Mainland Area, to redefine the status, proportion and structure of Chinese investment in Taiwan,” Su Chi-yen, a spokesman for Taiwan’s Investment Commission, said.