Association for Relations Across the Taiwan Straits and Straits Exchange Foundation signed on, August 9, Cross-Strait Agreement on Investment Protection and Promotion (The Agreement as below) in Taipei. Head of MOFCOM Department of Treaty and Law made an interpretation on the Agreement.

I. Contents of the Agreement

Head of MOFCOM Department of Treaty and Law said that the Agreement cover the elements and contents on conventional Agreement on investment protection. Specifically, the Agreement consist of text and attachments. The text includes 18 articles, namely, definitions, scope and exceptions, investment treatment, transparency, gradually reduction the investment restrictions, investment facilitation, expropriation, compensation, subrogation, transfer, refusing to grant the interests, dispute settlement on this Agreement's of two parties, dispute settlement of investors and the party in investment location, investment and commercial disputes, the contact mechanism, instrument format, revision and entering into force. The attachments made specifically provisions on investment compensation dispute settlement procedures.

II. Features of the Agreement

Head of MOFCOM Department of Treaty and Law pointed out that the Agreement not only includes both general content of the investment agreement and characteristics of the cross-strait. Features are as follows:

1. effective protection; On one hand, the Agreement cover general Rules of on investment protection, and reflect the tradition of investment protection; On the other hand, the Agreement focus on the real needs of both sides of the Strait, enhance its operability and copes with the issues like investors to invest in a third place, habeas corpus, and dispute settlement of investors and the party in investment location. The flexibility and appropriate arrangements made by the Agreement meet with the features of cross-strait.

2. two-way promotion; Even Mainland’s enterprises began to invest in Taiwan in June, 2009 and still at start, the Agreement reflects the principle of mutual promotion as much as possible, and balance between rights and obligations.

3. To reduction of restrictions; In accordance with Article 5 in The Cross-Strait Economic Cooperation Framework Agreement, the Agreement clearly stipulates the terms of investment treatment, investment facilitation, and reducing restrictions on investing, truly reflecting the purpose of promoting two-way investment.

(All information published on this website is authentic in Chinese. English is provided for reference only.)