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Chen Softens Approach To Taiwanese Investments In China

by Mary Swire, for LawAndTax-News.com, Hong Kong

28 February 2008

It emerged earlier this week that the Taiwanese authorities are considering the adoption of a less punitive stance towards Taiwanese firms with investments and operations in the Chinese Mainland.

In order to prevent an over-reliance on the growing Mainland economy, the government currently prevents Taiwanese firms from putting more than 40% of their assets there, and has been known to penalise companies that do not abide by these rules.

However, in a speech quoted by Reuters, President Chen Shui-bian announced that:

"To let Taiwan investors smoothly get through problems faced (in China) and encourage them to come back to Taiwan to invest, for those that haven't registered in the past, I've personally proposed researching re-registration."

Chen has reportedly advocated a less harsh enforcement of the regulations governing this area for firms with moderate levels of infringing investment in Mainland China which are prepared to bring said assets back to Taiwan.

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