China (PRC)
| On November 9, 2010, the National Development and Reform Commission (NDRC), the Ministry of Commerce (MOFCOM) and the Taiwan Affairs Office of the State Council (TAO) issued The New Regulations Governing Mainland Enterprises Making Investments in Taiwan (the New Regulations), which supersede the The Notice of Provisions Concerning the Regulations of Investment Projects by Mainland Enterprises in Taiwan issued by NDRC and TAO and The Notice Regarding Certain Issues Related to Mainland Enterprises Making Investments or Establishing Non-Enterprise Legal Persons in Taiwan, issued by MOFCOM and TAO (collectively, the Notices). The New Regulations made certain key changes to the Notices. The New Regulations (Rule 18) made it clear that any investments by a mainland enterprise into Taiwan, even through an offshore entity, would be subject to the New Regulations and approval by NDRC, and filing with MOFCOM would be required. The New Regulations no longer specify that NDRC, MOFCOM and TAO should monitor the mainland enterprises’ investments in Taiwan, but Rule 19 states that they are empowered to impose unspecified “penalty” on any mainland enterprise that violates the relevant regulations concerning investing in Taiwan. Lastly, the New Regulations no longer require that “key investment projects” be approved by the State Council after they have been approved by NDRC in consultation with TAO. |
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