A Bridge over Troubled Waters: Taiwan's Legal Regime for Handling Investments from PRC Entities

October 31, 2005 | BY

clpstaff &clp articles

As the most important facilitator in the warming of China-Taiwan relations in the future, the continued evolution and understanding of laws dictating commercial activity are crucial to the stability of East Asia.

By Jacqueline C. Fu, Shilin Huang and Alex Hung, J&J Attorneys at Law, Taipei

Commercial activities across the Taiwan Strait have become increasingly busy since the governments on both sides liberalized their traditionally defensive investment policies to one another. The key piece of Taiwanese legislation governing cross-strait investment activities is the Act Governing the Relations between the People of Taiwan and the Mainland ('Cross-Strait Relations Act') promulgated on July 31, 1992, which has undergone several amendments in coping with changes in the PRC-Taiwan relationship. Even with this new legislation, however, the activities that may be conducted by PRC citizens, companies and other entities in Taiwan remain limited. This article gives a brief introduction to the current regulatory regime governing PRC business activities in Taiwan in the fields of investment, commerce, technology transfer, real estate property, and trademark protection.

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