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the "Taiwan Compatriots Investment Protection
Law", which laid the foundation of the legal basis
for investment of Taiwanese capital. The New Law
specifically addresses the following five areas:
First, guarantee equal treatment of domestic and
foreign-funded enterprises. Article 9 of the draft
stipulates that, except as otherwise stipulated by
laws and administrative regulations, the policies
of the state to support enterprise development are
equally applicable to foreign-invested enterprises.
Foreign-invested enterprises participate in the
standardization work equally; the state guarantees
that foreign-invested enterprises participate in
government procurement activities fairly.
Second, comprehensive implementation of the
pre-entry national treatment plus negative list
management system, in addition to the negative list
in accordance with the principle of domestic and
foreign investment consistent management.
Third, the policy measures to actively attract
foreign investment are included in the law. The draft
stipulates that the people's governments at all levels
and their relevant departments shall further improve
the level of foreign investment services in accordance
with the principles of convenience, efficiency and
transparency. Local people's governments at all levels
and their relevant departments shall strictly abide by
the policy commitments made to foreign investors
and foreign-invested enterprises in accordance with
the law and various types of contracts concluded
in accordance with the law. If the state interests
or social public interests need to change policy
commitments or contractual agreements, they shall
be carried out in strict accordance with the statutory
authority and procedures, and the losses suffered by
foreign investors and foreign-invested enterprises
shall be compensated according to law.
Fourth, further simplify the management of
foreign investment. Except as otherwise provided
by laws and administrative regulations, the relevant
competent department shall, in accordance with the
conditions and procedures consistent with domestic
investment, review the application for permission of
foreign investors.
Fifth, clearly protect the intellectual property rights
of foreign investors and foreign-invested enterprises.
Encourage technical cooperation based on voluntary
principles and business rules. The draft stipulates
that the conditions for technical cooperation in the
process of foreign investment shall be determined
through negotiation between the parties to the
South China Business Journal 6
Law", which laid the foundation of the legal basis
for investment of Taiwanese capital. The New Law
specifically addresses the following five areas:
First, guarantee equal treatment of domestic and
foreign-funded enterprises. Article 9 of the draft
stipulates that, except as otherwise stipulated by
laws and administrative regulations, the policies
of the state to support enterprise development are
equally applicable to foreign-invested enterprises.
Foreign-invested enterprises participate in the
standardization work equally; the state guarantees
that foreign-invested enterprises participate in
government procurement activities fairly.
Second, comprehensive implementation of the
pre-entry national treatment plus negative list
management system, in addition to the negative list
in accordance with the principle of domestic and
foreign investment consistent management.
Third, the policy measures to actively attract
foreign investment are included in the law. The draft
stipulates that the people's governments at all levels
and their relevant departments shall further improve
the level of foreign investment services in accordance
with the principles of convenience, efficiency and
transparency. Local people's governments at all levels
and their relevant departments shall strictly abide by
the policy commitments made to foreign investors
and foreign-invested enterprises in accordance with
the law and various types of contracts concluded
in accordance with the law. If the state interests
or social public interests need to change policy
commitments or contractual agreements, they shall
be carried out in strict accordance with the statutory
authority and procedures, and the losses suffered by
foreign investors and foreign-invested enterprises
shall be compensated according to law.
Fourth, further simplify the management of
foreign investment. Except as otherwise provided
by laws and administrative regulations, the relevant
competent department shall, in accordance with the
conditions and procedures consistent with domestic
investment, review the application for permission of
foreign investors.
Fifth, clearly protect the intellectual property rights
of foreign investors and foreign-invested enterprises.
Encourage technical cooperation based on voluntary
principles and business rules. The draft stipulates
that the conditions for technical cooperation in the
process of foreign investment shall be determined
through negotiation between the parties to the
South China Business Journal 6
