Measures for the Administration of Investment in Taiwan by Mainland Enterprises

Article 3: A mainland enterprise wishing to invest in Taiwan shall actively adapt itself to the economic and industrial development particularities of the two sides of the Taiwan Strait, carefully select the sectors and projects it invests in by taking into account its own strengths and enterprise development strategy, diligently familiarise itself and comply with local laws and regulations, respect local customs and practices, attach importance to environmental protection and fully perform the necessary social responsibilities.

Article 4: A mainland investment entity wishing to invest in Taiwan shall satisfy the following conditions:

(1) being an enterprise with legal personality lawfully registered and operating in mainland China;

(2) having the industry background, funds, technology and management capabilities for the project in which it is applying to invest; and

(3) being conducive to the peaceful development of the relationship between the two sides of the Taiwan Strait and not jeopardising the safety or unity of the state.

Article 5: When a mainland enterprise wishes to invest in a project in Taiwan, it shall, if it is a local enterprise, submit an application to the provincial-level development and reform commission of the place where it is located. Once the provincial-level development and reform commission has completed its preliminary examination, it shall forward the application to the National Development and Reform Commission for check and approval. An enterprise under the central government shall apply to the National Development and Reform Commission directly for check and approval.

Article 6: The investment in and establishment of an enterprise or non-enterprise legal person in Taiwan by a mainland enterprise shall be subject to the check and approval of the Ministry of Commerce. In the case of a local enterprise, the competent provincial-level commerce authority of the place where it is located shall submit the application to the Ministry of Commerce after its preliminary examination. An enterprise under the central government shall submit its application directly to the Ministry of Commerce.

Article 7: The National Development and Reform Commission will carry out the procedures for the check and approval of a Taiwan investment project in accordance with the Tentative Measures for Administration of the Check and Approval of Outbound Investment Projects (Order of the National Development and Reform Commission No.21), and when conducting its review, it will seek the opinion of the Taiwan Affairs Office of the State Council. Copies of the National Development and Reform Commission's approval document shall be sent to the relevant departments such as the Ministry of Commerce and Taiwan Affairs Office of the State Council.

Article 8: With respect to a Taiwan investment project for which the approval of the National Development and Reform Commission has already been secured, the Ministry of Commerce, when carrying out the check and approval procedures, will not again seek the opinion of the Taiwan Affairs Office of the State Council.

Article 9: When a mainland enterprise is to invest in and establish an enterprise or non-enterprise legal person in Taiwan, the Ministry of Commerce will seek the opinion of the Taiwan Affairs Office of the State Council after receiving the application. Once it has secured the consent of the Taiwan Affairs Office of the State Council, the Ministry of Commerce will carry out the check and approval procedures in accordance with the Measures for the Administration of Outbound Investment (Order of the Ministry of Commerce No.5 of 2009) and issue a Certificate for Outbound Investment of an Enterprise or Certificate for an Overseas Organisation of an Enterprise.

Article 10: A mainland enterprise shall carry out relevant procedures, such as the examination and approval procedures for relevant persons to go to Taiwan and foreign exchange registration on the strength of the approval document for the investment project or establishment of an enterprise (including an organisation) from the relevant department and its Certificate for Outbound Investment of an Enterprise or Certificate for an Overseas Organisation of an Enterprise.

Article 11: Once the enterprise or non-enterprise legal person invested and established in Taiwan has been registered there, the mainland enterprise shall submit the relevant registration document to the National Development and Reform Commission, Ministry of Commerce and Taiwan Affairs Office of the State Council for record purposes within 15 working days.

Article 12: With respect to an investment in Taiwan for which approval has been secured, the mainland enterprise may enjoy relevant state policy support on the strength of its approval document and Certificate for Outbound Investment of an Enterprise or Certificate for an Overseas Organisation of an Enterprise.

Article 13: If a mainland enterprise secures relevant certification as a service provider, etc., it shall be eligible for the benefits granted under the relevant agreements executed by the two sides of the Taiwan Strait.

Article 14: The National Development and Reform Commission, Ministry of Commerce and Taiwan Affairs Office of the State Council will strengthen their guidance of, and service to, mainland enterprises investing in Taiwan, and provide effective guidance to enterprises through channels such as the foreign investment cooperation information service system and investment guidelines.

Article 15: The National Development and Reform Commission, Ministry of Commerce and Taiwan Affairs Office of the State Council will strengthen their training of mainland enterprises investing in Taiwan, in particular, policy, personnel and investment environment- related training, so as to enhance the specificity and practicability of investments in Taiwan by enterprises.

Article 16: Relevant associations, chambers of commerce and consulting firms are encouraged to strengthen their research and analysis of the Taiwan investment environment, market information and industrial development, and publish research and development reports to serve as reference for mainland enterprises investing in Taiwan.

Article 17: If a mainland enterprise makes a change to or terminates its investment in Taiwan, it shall carry out relevant procedures in accordance with the Tentative Measures for Administration of the Check and Approval of Outbound Investment Projects and the Measures for the Administration of Outbound Investment.

Article 18: If a mainland enterprise is to invest in Taiwan via an overseas enterprise, it shall carry out the check and approval procedures with the National Development and Reform Commission and the record filing procedures with the Ministry of Commerce in accordance with provisions.

Article 19: If a mainland enterprise invests in Taiwan in violation of provisions, the National Development and Reform Commission and Ministry of Commerce together with the Taiwan Affairs Office of the State Council will impose penalties in accordance with relevant provisions.

Article 20: These Measures shall be effective as of the date of issuance. The Circular on Relevant Provisions for Administration of the Taiwan Investment Projects of Mainland Enterprises (Fa Gai Wai Zi [2008] No.3503) issued by the National Development and Reform Commission and Taiwan Affairs Office of the State Council, and the Circular on Matters Relevant to the Investment in Taiwan and Establishment of Non-enterprise Legal Persons in Taiwan by Mainland Enterprises (Shang He Fa [2009] No.219) issued by the Ministry of Commerce and Taiwan Affairs Office of the State Council shall be repealed simultaneously.