Integrity Legal

10th December 2010

Those who read this blog with any frequency may have taken note of the fact that the administration has recently been posting some information regarding legal and corporate issues arising in locations such as the Peoples’ Republic of China and also Taiwan. Recently, it came to the attention of this author through the periodical of Cenlaw that Mainland Chinese officials are taking measures to regulate investment by Mainland enterprises in Taiwan. To quote directly from the periodical of Cenlaw:

Chinese Authorities Regulate Investment In Taiwan By Mainland Enterprises

The Ministry of Commerce, the National Development and Reform Commission and the Taiwan Affairs Office have jointly issued the “Measures for the Administration of Investment in Taiwan by Mainland Enterprises’. Pursuant to the Measures, a mainland subject intending to invest in Taiwan shall meet the following conditions: 1. it should be a corporate legal person legally registered and operated in the mainland; and 2. it should have an industrial background, capital, technology and management capacity. In addition, to invest in projects in Taiwan, a mainland local enterprise shall file an application with the provincial development and reform commission where it is located. The application shall be reviewed first by the provincial development and reform commission and then be submitted to the National Development and Reform Commission for approval. For a mainland enterprise under the control of the central government, it may directly apply to the National Development and Reform Commission for approval for its investment in Taiwan. In order for a mainland business to set up a corporate or non-corporate entity in Taiwan for investment ,it must have received approval from the Ministry of Commerce.

It is interesting to note this policy as many in Asia are finding investment opportunities in multiple markets and jurisdictions. Meanwhile, government officials in different jurisdictions are adopting differing strategies when attempting to execute policy.

Mainland China and Taiwan have evolved differently when one looks at the history of these locations. That said, it would appear that market forces and economic factors are the most pivotal issues which will have an impact upon the future of these locations. Furthermore, it would appear that as multi-jurisdictional trade increases so too does the need for a regulatory framework to deal with business matters arising in the context of Mainland China and also Taiwan. Hopefully, through cooperation and thoughtful foresight economic relations between the Mainland and Taiwan will result in economic benefits for everyone concerned during the present and for future generations.


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