Taiwan FDI control
Produced in partnership with Lee and Li

The following Competition practice note produced in partnership with Lee and Li provides comprehensive and up to date legal information covering:

  • Taiwan FDI control
  • 1. What is the applicable legislation?
  • 2. Which government or other body (or bodies) reviews foreign investments?
  • 3. What is the scope of the foreign investment regime? Does it only apply to specific sectors or types of investors (e.g. foreign or non-EU / non-WTO)? Are there specific rules for certain types of investors (e.g. state-owned enterprises)?
  • 4. What are the triggers or thresholds for the regime to apply? What types of transactions are caught? Is there a minimum level of shareholding or a control test that applies? Are there any other thresholds that need to be met (e.g. based on turnover or market shares)?
  • 5. Are there any exceptions that may apply?
  • 6. Is there any discretion to review transactions that do not meet any thresholds for review?
  • 7. What are the grounds for review, eg public or national security or other grounds?
  • 8. What level of discretion do the relevant authorities have to approve or reject transactions? Is there scope for any other body to intervene?
  • 9. Where a transaction is caught by the regime, is notification mandatory and must closing be suspended pending clearance?
  • More...

Taiwan FDI control

A conversation with Yvonne Hsieh, Senior Counselor, at Taiwanese law firm Lee and Li, on key issues on foreign direct investment (FDI) control in Taiwan.

1. What is the applicable legislation?

Foreign investments in Taiwan can be divided into foreign investments (non-PRC) and PRC investments. The Statute for Investment by Foreign Nationals ("SIFN"), last amended on November 19, 1997, applies to foreign investments in Taiwan including the restrictions on and the protection and administration of such investments. PRC investors are subject to more restrictions than non-PRC foreign investors. The main laws and regulations governing PRC investments are the Act Governing Relations between the Peoples of the Taiwan Area and The Mainland Area and the Measures on Investment Permits for People of the Mainland Area ("MIPPM"). According to Article 3 of the MIPPM, the definition of a PRC investor is a PRC individual, legal person, or-ganization, other institution or their third-area company. A third-area company is deemed as a PRC investor if 30% of its shares are held or controlled by a PRC individual, legal person, organization or any other institution.

Only a foreign investment regime under the SIFN will be discussed here.

2. Which government or other body (or bodies) reviews foreign investments?

The Investment Commission of the Ministry of Economic Affairs ("MOEAIC") is the lead government authority for foreign investments. In reviewing an application, depending on

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