Investment protection agreement marks new milestone in cross-strait relations

Two years of negotiations have finally resulted in the signing of the Cross-Strait Investment Protection and Promotion Agreement between Taiwan and mainland China on August 9, formally establishing an institutionalized cross-strait mechanism that strengthens protection of the lives and property of investors. The agreement encompasses Taiwanese businesses that invest through third areas, and marks a new milestone in cross-strait economic and trade relations.

Statistics compiled by the Investment Commission of the Ministry of Economic Affairs (MOEA) show that applications by Taiwanese businesses to invest in China amounted to a total of 39,891 cases with a total investment value of approximately US$117.4 billion between 1991 and the end of June this year. This accounted for about 63% of Taiwan’s total outward investment during the period, making China the biggest recipient of overseas investment by Taiwanese businesses.

Many Taiwanese companies have been struggling to develop their business in mainland China for years, and some have even moved the center of their operations there, but their investments have never enjoyed legal protections. Minister Shin-Yuan Lai of the Mainland Affairs Council (MAC) notes that the Cross-Strait Investment Protection and Promotion Agreement is a vital foundation for the protection of Taiwanese investors, “the first step in the establishment of safety,” and that it will help make the protection of Taiwanese businesses more complete and more institutionalized, and the investment environment healthier.

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http://investtaiwan.nat.gov.tw/news/news_eng_display.jsp?newsid=2332&MID=8