Taiwan authorities approved China Mobile Ltd. (SEHK: 0941 and NYSE: CHL)'s application for the establishment of a subsidiary on the island, quoting the Taiwanese media.

According to the application submitted in late 2009, the subsidiary will be engaged in electronic materials wholesale. It has not accomplished registration procedures yet, said the Ministry of Economic Affairs (MOEA).

China Mobile brews to seek a stake in Far EasTone Telecommunications Co., Ltd. via the new subsidiary, guessed the Taiwanese press. However, the MOEA denied the guess, explaining that China Mobile's investment in Taiwan-based Far EasTone Telecommunications will not be permitted because investors in the Mainland China are not allowed to dip their toes into the island's telecom industry.

The MOEA said that it did not receive China Mobile's application for investment in Far EasTone Telecommunications. If receiving, it will reject the application.

China Mobile hopes to spend TWD 17.8 million or so buying a 12% stake in Far EasTone Telecommunications, the mainland telecom carrier said in August 2009. In terms of subscribers, China Mobile is the biggest mobile telecom operator in the world.

source:tmcnet