The Taiwanese government has attempted to increase labor market participation in the island state by opening up its industries to Chinese investment.

The Ministry of Economic Affairs has disclosed that 11 public infrastructure projects, 25 service industries and 64 manufacturing sectors will now welcome funding from China's private sector, Bloomberg reported.

Implemented to reduce the island group's current record unemployment rate, which reached 5.84 per cent of the working population in May, this initiative is also likely to improve tense relations with China.

Ma Tieying, economist at DBS Group Holdings in Singapore, told the news agency that high-technology companies are likely to take advantage of this opportunity.

He said: "Allowing Chinese investment will help boost demand and employment in Taiwan and help to boost the real economy in the medium to long-term."

The Taiwanese Council of Labor Affairs has also revealed today (June 2nd) that 130,000 people applied for unemployment pensions in June, which is a historical high, the China Post reported.