Taiwan will Open its Service Trade to Chinese Mainland in Two phases

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Last updated at: (Beijing Time) Friday, January 18, 2002

Taiwan will Open its Service Trade to Chinese Mainland in Two phases

According to the news of January 17 from Taiwan, the Island province "Executive Yuan" has approved a list of 58 business items in detail to be opened for investment from China's mainland.

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According to the news of January 17 from Taiwan, the Island province "Executive Yuan" has approved a list of 58 business items in detail to be opened for investment from China's mainland.

Taiwan will at the initial stage open for indirect investment, and the second stage will see the direct investment opened for the capital from China's mainland to Taiwan. And this is to be followed with the evaluation and planning in future for the capital from China's mainland to invest in Taiwan's securities and bonds market in view of the run of opportunities and conditions.

According to the Taiwan media, the detailed list includes the international express delivery on land, minicab-rental for passenger transportation, sales of sports and games and other amusement services, air-transportation, advertisement, hotel business and foodstuff and so on. As to the particular time of opening, it is going to be decided when the "Legislative Yuan" completes the considerations of the "Regulations of the People's Relations Across the Strait" and the "Amendment for Regulations of the Relations with Hong Kong and Macau".

This is the first time for Taiwan to open its service trade to China's mainland, said Tsai Ing-wen, chief of the Taiwan "Mainland Affairs Council". In the negotiation for Taiwan's entry into the WTO it didn't make any commitment for opening all its service items and the opening to the capital from the Chinese mainland is also based on this commitment. Taking all its service items into account Taiwan has promised to open a total of 108 items to the WTO member countries and regions. The first batch to be opened to China's mainland comes to 58 items, being over half of the total. And later on, the Taiwan units concerned will make a periodic checkup on them every six months and also accept the application of manufacturers and industrial groups for a non-periodic checkup.

In line with the scope of its special service trade as committed by Taiwan at its accession to the WTO, Taiwan will divide its service trade into three categories, pointed out Tsai Ing-wen. The first category includes those to be first opened to the capital from China's mainland after both sides of the strait enter into the WTO, the second being those trades to be considered according to the development of the situation and the third those not to be considered for capital investment from the Chinese mainland.

Based on the classification, the Taiwan "Mainland Affairs Council" worked out three principles for the opening. First, the profit-making trades will have the priority to be opened to investment from China's mainland while non-profitable trades like educational service, health service (such as medical and healthcare) are to be planned in accordance with the educational and medical policies. Secondly, the corporate services will enjoy the priority to be opened first while the other service trades as offered in the form of a natural person, such as lawyer, accountant, architect and other professional technicians will be planned in line with the development policy for professional services, the examination policy for special technicians and other rules and regulations for certificates and licenses. Thirdly, the other trades which have the priority to be opened are those that do not constitute monopoly in economy, or incite any sensitiveness in political, social and cultural aspects nor will they cause any instability in its economic development or influence the financial stability in Taiwan.

The regulated scope for the capital from China's mainland to be invested in Taiwan includes: first, the direct investment by natural persons, legal persona, economic groups and other institutions from the Chinese mainland to invest in Taiwan; secondly: the indirect investment by natural persons, legal persona and groups or other institutions that are to hold certain proportion (one third for the time being) or some influential companies in foreign lands or any from the third areas to invest in Taiwan.

By PD Online Staff Han Rongliang

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