China announced details on implementing a law on protecting the investment of Taiwan compatriots in the mainland on December 12. The rules, a supplement to the Law on the Protection of Investment of Taiwan Compatriots adopted in March 1994, will be effective as of today on December 12.

The rules are intended to encourage more Taiwan compatriots to invest in the mainland and protect their business interests.

Taiwan compatriots can invest in the mainland with convertible currencies, machinery and equipment, industrial property, non- patent technology and can take part in the exploration of natural resources, supplementary trade, purchasing stocks and bonds, buying real estate and developing leased land.

Taiwan investors who want to set up enterprises in the mainland need to apply for permission from the Ministry of Foreign Trade and Economic Cooperation and relevant departments authorized by the State Council and local governments. Applications will be processed within 45 days. Preferential treatment will be given to Taiwan investors in taxation and those who invest in China's western areas.

The children of Taiwan investors can go to primary schools, high schools or universities the mainland. Taiwan investors can also apply for establishing their own schools in areas where they are based, but will be subject to the rules and regulations of local educational administrations.

Fee charges for Taiwan enterprises will be identical to enterprises in the mainland. Any work units or organizations should not arbitrarily increase fees or set their own charging standards.

Investments, possessions, property rights, profits and other legal incomes of Taiwan compatriots in the mainland are protected by the law and are allowed to be transferred or inherited.

Profits and other income of Taiwan investors can be sent back to Taiwan or other regions outside of the mainland.