DebbraBurns
The Chinese National Assembly amended the law to simplify investment procedures for Taiwanese companies, attempting to create goodwill before the island election.
The revised law, announced by the Chinese parliament today, removed bureaucratic steps to encourage investment from Taiwan. Chinese Ministry of Commerce official Jiang Chenghua told reporters that the government "pays great attention" to securing and encouraging investment from Taiwan and that Taiwanese companies receive support from the highest levels, including President Xi Jinping.
Visitors visit the Taiwanese company Fox Conn's booth at an exhibition in Tianjin, China in May 2018 Photo: Reuters
"The amended terms are not significant but have great significance and are conducive to optimizing the mainland's investment environment for Taiwanese people, further broadening economic, trade and cooperation exchanges between the two. party, "said Jing.
The amendment of the law in accordance with the new foreign investment law takes effect from 1/1/2020. Chinese Trade Minister Chung Son said this week he wanted "Taiwanese people to benefit from this big change".
Taiwan believes that China is intensifying its efforts to influence voters before the January 11, 2020 election. The island government has proposed an anti-intrusion bill aimed at countering Chinese efforts and could pass next week.
China with a population of 1.3 billion is Taiwan's favorite investment destination. Taiwanese companies have invested more than US $ 100 million since China began economic reforms in the late 1970s due to its shared culture and low cost.
China is also Taiwan's leading trading partner with a total trade value of US $ 226 billion in 2018. Taiwan has a large trade surplus with China.
Taiwan has tried to break free from its dependence on China and encourage Taiwanese companies to return home or shift their investments to other parts of the world, especially in Southeast Asia. Taiwan's economy has benefited since their company moved production to the island in order to escape taxes from the US-China trade war, although the dispute also poses some disadvantages to the island's economy. island.
