CHINA UNIFORMLAW NET

China gives special favor to Taiwan investors

Date: 12/26/1999
Page: 2
Author: WU FENG, Business Weekly staff

The recently issued Detailed Rules for the Implementation of the Law for Protecting the Investment of Taiwan Compatriots has demonstrated the central government's firm determination to protect the interests of Taiwan businesses on the Chinese mainland, a senior official from the Ministry of Foreign Trade and Economic Co-operation (MOFTEC) told Business Weekly last week.

Zhang Yuqing, director-general of MOFTEC's Laws and Treaties Department, which has taken charge of drafting the principles, said the rules are significant because no similar set of regulations has ever been made in China.

The Detailed Principles, expected to strongly boost Taiwan investment on the mainland, cover a wide range of issues, from the education of Taiwan investors' children to border entry requirements.

Zhang refuted some Taiwan authority's criticisms that the principles allegedly did not include detailed regulations for protecting Taiwan investors' safety on the mainland.

"Taiwan compatriots' safety is of course secured on the mainland. The Criminal Law and regulations regarding public security strongly guarantee their security," he said.

He said the Detailed Rules will also be applicable to Taiwan businesses that make investments on the mainland in the name of a third-party investor.

Because of the Taiwan authority's restrictions on Taiwan businesses' investments on the mainland, some Taiwan businesses have invested on the mainland via a circuitous route, such as by first getting registered in a third country or region, to circumvent the Taiwan authority's control.

In a speech given after the promulgation of the Detailed Rules, MOFTEC Minister Shi Guangsheng said the principles demonstrate the central government's commitment to protecting all reasonable rights of Taiwan investors no matter what the circumstances.

"The rules significantly improve the mainland's investment environment. They encourage and protect Taiwan businesses' legitimate rights and promote Taiwan investment on the mainland," he said.

He urged the Taiwan authority to stop politicizing trade and investment issues and to cancel its unreasonable restrictions on cross-Straits economic exchanges as soon as possible.

MOFTEC statistics revealed that by the end of October, there were 43,408 Taiwan invested projects involving US$43.59 billion in pledged capital and US$23.45 billion in actual input.