Wed, Feb 04, 2009 - Page 3 News List

Ministry eases fines on unapproved PRC investments

STAFF WRITER, WITH CNA

The Ministry of Economic Affairs on Monday eased penalties on Taiwanese businesses with unapproved investments in China, saying it would impose only the minimum fine on most violators if they reported these illegal investments and made new investments at home.

The newly modified regulations apply to unreported investments in China, regardless of their scale, if the investments were made before March 10 last year.

However, they do not apply to businesses that fall under categories “banned” by Taiwanese authorities for investment in China.

Businesses that failed to report investments made in China after March 10 will be fined depending on the size of investment. Ministry officials said, however, that violators would be treated more leniently under the new rules compared with those under the previous administration.

The modified rules are aimed at encouraging Taiwanese entrepreneurs to return home and generate new investment in the domestic market.

In response to the ministry’s announcement, some Taiwanese businesspeople that are based in China said the overture was not “very meaningful.”

Chuang Fu-chih (莊福池), chairman of a Taiwanese business association in Fuzhou City, Fujian Province, said only a sound investment climate would encourage Taiwanese businesspeople to return.

“Businesspeople should not be punished for investing in China, because it is a misguided policy,” he said. “Moreover, the number of violators is low.”

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