The Unreasonableness Of The Identification Of "Mainland Capital" In Taiwan

Since July 3,2009,Taiwan "Economy Ministry" announced"The Method of Investment License for People of Mainland China Invest in Taiwan","The Licensing Measures of Mainland' s Profit-making Business to Set up Branches or Offices in Taiwan",Then Taiwan began to formally accept investment applications from mainland investors.However,even if Taiwan opens "Mainland Capital" into the island,but it' s opening is conditional,and the investment projects are used "positive list" mode,which is different from the policy of Taiwan treats"Overseas Foreign Capital",which adopting a "negative list"mode.At the same time,Taiwan authorities set a large number of restrictions and barriers in pre-admission stage and post-admission stage for mainland China's investment in order to review investment,which hinders the investment pace of mainland investors.Among them,to a certain extent,Taiwan's specifications about how to identify the identity of "Mainland Capital",which limited the process of "Mainland Capital”entering Taiwan.Not only that "Regulations on People's Relations on Both Sides of the Straits" and "The Method of Investment License for People of Mainland China Invest in Taiwan" contain the identity of "Mainland Capital",but also Taiwan "Economy Ministry" comes up with an explanation and relevant identification standards expertly to set“Mainland Capital".The standards have both objective elements and vague subjective criteria,and endow the competent authorities with a lot of administrative discretionary space.In 2015,the Singapore Alibaba company and Hong Kong Taobao company operating in Taiwan were fined by Taiwan“Economy Ministry" and demanded to withdraw funds within six months.The two companies thought that the punishment was wrong,and brought the administrative reconsideration to Taiwan“Cabinet”separately.As a result,all two administrative reviews were rejected.Then both companies had filed administrative suits,and the two lawsuits ended in 2016.But two completely different judgments reflected the problems of Taiwan' s specifications which how to identify the identity of"Mainland Capital".Analyzing in depth of specifications about the identity of "Mainland Capital" of Taiwan region,and comparing the provisions of Taiwan,mainland China,Hong Kong and Macao which about the identification of investment subject,and the identification of investor identity in the relevant investment agreements between the two sides of the Taiwan Straits,Taiwan and other economies,Then pointing out the irrationality of Taiwan's standard of identification of"Mainland Capital".At the same time,Analyzing the influence of the standard on "Mainland Capital" and "Overseas Foreign Capital" before and after the entry of capital admittance combining with the investment practice.Finally,according to the unreasonable provisions of the identification of "Mainland Capital" in Taiwan area,this article puts forward its own proposals to the Taiwan authorities on the revision of the"Mainland Capital" identification standard and the "Mainland Capital" investment review system and the improvement of"Mainland Capital" into the Taiwan supporting measures.