Taiwan and China Will Set Up Coordination Platform Under Investment Protection Agreement

Taipei, July 27, 2012 (CENS)--With Taiwan and mainland China scheduled to sign cross-Taiwan Strait investment protection agreement in August, both parties have agreed to jointly establish contact and coordination platform under the agreement. For Taiwan, the contact window is the “joint service center for Taiwanese businesses,” under the Department of Investment Services, the Ministry of Economic Affairs (MOEA).

In the future, investors from both sides can seek official assistance via the platform for handling investment-related disputes, such as the recent cases of the unreasonable rental hike of Sogo department store and the patent infringement of Hon Hai in China.

At present, Taiwanese businessmen redress investment-related disputes mainly via the channels of Straits Exchange Foundation (SEF) and Association for Relations Across the Taiwan Straits (ARATS). Following the signing of cross-Strait investment protection agreement, the establishment of the official contact and coordination platform can elevate the handling of Taiwanese businesses-related disputes to the official level. An official expressed that the setup of official coordination platform will give Taiwanese businesses an option for handling their disputes, on top of the existing channels of SEF and ARATS.

An MOEA official noted that the “joint service center for Taiwanese businesses” of the Department of Investment Services will serve as the contact window in Taiwan. The contact window in China may be a unit under the Office of Taiwan Affairs.

The official stressed that the projected official platforms of both sides will have both the functions of contact and coordinated settlement. In the future, Taiwanese businesses can seek official assistance via the platform for handling investment-related disputes, including those with other investors or the government, no matter whether they are covered by contracts or not.

After over one year of talk, the cross-Strait investment protection agreement had almost been completed in June. However, Due to their distrust of mainland China's judicial system, Taiwanese businesses further requested inclusion of such articles as stealth of business secret and patent infringement, leading to repeated postponement for the signing of the agreement.

Insiders said the official platform offers a mechanism for handling disputes which cannot be included into the agreement. Taiwanese businesses can have an extra channel for redressing unfair treatment from mainland China's judicial system or enterprises.