Taiwan Businessmen Undisclosed Investment In Mainland Legal Issues Preliminary Exploration

It has been nearly 30 years since the investments of Taiwanese businessman in mainland Chinese started in the 20th century, early 80 years. During these 30 years, the scale of Taiwanese investment was expanding rapidly. In recent years, more and more Taiwanese investments have been attracted in mainland China because of the good momentum of development of cross-strait relations, especially the breakthrough between economic and trade cooperation, and the increasing opening in the mainland investment market. However, with the expanding scale of Taiwanese businessmen investment and the growing number of projects, Taiwan-related legal disputes are increasing. Among these, legal disputes arising from dormant investment of Taiwanese businessman in mainland China have a prominent proportion.Since the current law of the mainland has no clear defines on the legal effect of dormant investment, it has no statutory basis and uniform standards on the identification of the effect of Taiwanese businessman dormant investment in mainland China, and has vary results. This situation is not conducive to protecting the rights of Taiwanese businessman investing in the mainland China and impacts obstruction in a certain extent. It is urgent to improve legal environment of investment in the mainland in the point of view on legislation and justice. This article is based on the legal theory of Taiwanese businessman dormant investment in mainland China and analyses some related legal issues of the current phenomenon of Taiwanese businessman dormant investment in mainland China, combined with relevant legislative and judicial practice, and on the basis make some opinions and suggestions on how to solve the problem.In the research method, this article adopted comparative research method and the law explanation method. Through progressive analysis of the three concepts of Dormant Investment, Foreign Dormant Investment and Taiwanese Businessman Dormant Investment, this article discusses the difference from Taiwanese businessman dormant investment and the other two concepts. Meanwhile, the article also combines the current legislative practice of Taiwanese businessman dormant investment in mainland China, starts from the law itself, and analyses the legal effect of Taiwanese businessman dormant investment. The relevant solutions and suggestions are put forward at the end of the article.This article includes five main parts. The first part describes the concept, legal characters and types of dormant investment of Taiwanese businessman in mainland China. The second part analyses the basic status of dormant investment of Taiwanese businessman and focuses on the main reasons of the phenomenon. The third part analyses the legislation attitudes of dormant investment in the two legal systems from the extraterritorial perspective, and gives the analysis of the legislative practice of Taiwanese businessman dormant investment in mainland China, including the analysis on the legal characters and the international law foundation of ECFA, which is the current focus of attention by cross-strait. The fourth part describes and analyses the legal effect of Taiwanese businessmen dormant investment on three kinds of foreign-invested enterprises or ventures in mainland China from the legal theory and practice of legislation and justice. Meanwhile, the legal effect of Taiwanese businessmen dormant investment on the other kinds of enterprises or ventures is put forward briefly. The fifth part gives some opinions and suggestions on how to solve the problem from the legislation of Taiwanese businessmen dormant investments in mainland China and improve the legal environment in the mainland for the investment of Taiwanese businessman.