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Law on the Protection of Investments by Taiwan Compatriots of China (2019)


Type of laws Law

Issuing body Standing Committee of the National People's Congress

Promulgating date Dec 31, 2019

Effective date Jan 01, 2020

Validity status Valid

Scope of application Nationwide

Topic(s) Foreign Investment Affairs Relating to Hong Kong, Macau and Taiwan

Editor(s) C. J. Observer

The Law on the Protection of Investments by Taiwan Compatriots of China was promulgated in 1994, and amended in 2016 and 2019 respectively. The latest revision entered into force on January 1, 2020.

There are 14 articles in total.

The key points are as follows:

1.This law is enacted to protect and encourage Taiwan compatriots’ investment and to promote economic development on both the mainland and Taiwan. (Article 1)

2.The State shall not nationalize or expropriate the investment of Taiwan investors. Under special circumstances, according to the need of public interest, the investment of Taiwan investors could be expropriated according to legal procedure with a due remuneration.(Article 4)

3.Profits from investment, other lawful income and funds gained by Taiwan investors, can be repatriated to Taiwan or other places beyond the mainland after clearance.(Article 10)

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