Cross-strait
Bilateral Investment
Protection and
Promotion Agreement
出版日期 100年 4月15日
Cross-strait Bilateral Investment
Protection and
Promotion Agreement
CONTENTS
02
Introduction
04
ABCs of Cross-strait BIA Q & A
Q1： What is the Cross-strait BIA? What is the relationship between
the Cross-strait BIA and the Economic Cooperation
Framework Agreement (the "ECFA")? Does the Cross-strait BIA
provide comprehensive protection?
Q2： Why enter into the Cross-strait BIA?
Q3： What kinds of "investment" are being protected?
Q4： Does the Cross-strait BIA protect Taiwanese investors who
invest in Mainland China via a third place?
Q5： How does the Cross-strait BIA protect the personal safety of
Taiwanese investors and their family members in Mainland
China?
Q6：What is done when disputes arise between the investor and
the government of the host country?
Q7： Are channels provided for the settlement of disputes between
Taiwanese investors and state-owned enterprises or private
companies in Mainland China?
Q8： Whom can I refer to if I have any questions regarding the
Cross-strait BIA?
Cross-strait Bilateral Investment
Protection and Promotion Agreement
Introduction
Mainland China is the largest recipient of Taiwan's
outward investment. For this investment, the Taiwanese
investors need protection of their property and personal
safety, preferably agreement-based. Taiwan and
Mainland China have agreed, through negotiations, to
sign the Cross-strait Bilateral Investment Protection and
Promotion Agreement ("Cross-strait BIA") as a follow-up
agreement to the Economic Cooperation Framework
Agreement (ECFA).
02
Introduction
Investment in Mainland China by Taiwanese companies
contributes to Taiwan's international trade, its domestic
industries, and related employment. The most obvious
benefit of the Cross-strait BIA is to provide Taiwanese
investors with institutionalized protection of their investment
rights and interests, and to allow the competent authorities
of both sides to assist in handling related matters in
accordance with the Agreement. Protecting Taiwanese
investors in Mainland China will, in effect, also enhance the
interests of Taiwan industries that are linked to the investors,
and of their employees.
03
Cross-strait Bilateral Investment
Protection and Promotion Agreement
Q&
ABCs of
Cross-strait BIA
Q1
A
What is the Cross-strait BIA? What is the
relationship between the Cross-strait BIA and the
Economic Cooperation Framework Agreement
(the "ECFA")? Does the Cross-strait BIA provide
comprehensive protection?
Protection for Investment!
As the name suggests, the Cross-strait BIA is an
agreement that provides protection, of a standard higher
than in the past, of cross-strait investments. It is a followup agreement to ECFA. Investors should still be aware,
however, that the investment environment in Mainland
China is changing rapidly and that careful assessment of
the risks is essential before an investment is made.
04
s-strait BIA
ros
?
C
ABCs of Cross-strait BIA Q & A
ECFA
Q2
Why enter into the Cross-strait BIA?
Answer to Taiwanese investors' long-time
expectations!
The Cross-strait BIA not only widens and deepens the
protection of Taiwanese investors' rights and interests
in Mainland China, but also meets their long-term
expectations. The Agreement further facilitates investment
cooperation and creates a better investment climate
across the strait.
05
Cross-strait Bilateral Investment
Protection and Promotion Agreement
？
？
Q3
？
What kinds of "investment" are being protected?
Not limited to any specific industries! All
investments falling within the definition of
investment are protected!
All kinds of investments come under protection as long as
they fall within the definition of investment as contained
in the Cross-strait BIA and are made in accordance with
the respective laws and regulations of each side of the
strait. In other words, regardless of the type of the industry
which an investment comes under it is protected, so long
as it has been made legally.
06
ABCs of Cross-strait BIA Q & A
Q4
Does the Cross-strait BIA protect Taiwanese
investors who invest in Mainland China via a third
place?
Taiwanese investors who invest via a third
place are also protected!
A significant number of Taiwanese investors have invested
in Mainland China through places outside of Taiwan (ex:
British Cayman Islands, British Virgin Islands). To enlarge the
scope of protection, in addition to those who invest directly
in China, Taiwanese investors who invest indirectly via a
third place are also included in the scope of "investors." This
provision enables many more Taiwanese investors to enjoy
the protection provided by the Cross-strait BIA.
07
Cross-strait Bilateral Investment
Protection and Promotion Agreement
Q5
How does the Cross-strait BIA protect the
personal safety of Taiwanese investors and their
family members in Mainland China?
By providing clear protection principles and
a notification mechanism!
In order to fully protect the personal freedom and safety
of Taiwanese investors—who have long been pleading
for such protection--the Cross-strait BIA provides basic
principles for the protection of personal freedom and
safety along with a mechanism for notification of criminal
activity. This is extra protection; normally, BIAs do not
cover this issue. Both sides have agreed that whenever
a restriction is placed on the personal freedom of a
Taiwanese investor, Mainland China should notify his/her
family members or enterprise within 24 hours, and also
notify the Taiwanese authorities in a timely fashion.
08
ABCs of Cross-strait BIA Q & A
Q6
What is done when disputes arise between the
investor and the government of the host country?
The BIA provides more flexible channels for
dispute settlement!
If the host government fails to fulfill its obligations
under the Cross-strait BIA, giving rise to disputes, the
Agreement provides investors with five different settlement
mechanisms: negotiation, coordination, conciliation,
mediation, and administrative/judicial proceedings. These
channels provide more options and flexibility than before,
and investors can choose from among them to fit their own
particular purpose and situation.
09
Cross-strait Bilateral Investment
Protection and Promotion Agreement
Q7
Are channels provided for the settlement of
disputes between Taiwanese investors and
state-owned enterprises or private companies in
Mainland China?
Private-to-private disputes are also
addressed!
In order to better protect Taiwanese investors, the
government managed to have a private-to-private
dispute settlement mechanism included in the Cross-strait
BIA. As a result, with the consent of both parties, a dispute
may be submitted to arbitration under the auspices of
arbitration institutions in Taiwan or Mainland China (Hong
Kong included). Arbitration may be conducted in a third
place (such as Singapore), with impartial professional
arbitrators. Arbitral awards may be filed with the courts on
either side of the strait for enforcement.
10
ABCs of Cross-strait BIA Q & A
Q8
Whom can I refer to if I have any questions
regarding the Cross-strait BIA?
Contact the Joint Ser vices Center for
Taiwanese Businesses!
Please contact the Joint Services Center for Taiwanese
Businesses at the Department of Investment Services of the
Ministry of Economic Affairs for any inquiry regarding the
Cross-strait BIA or investment matters, or for any needed
consultation.
11
Cross-strait Bilateral Investment
Protection and Promotion Agreement
MEMO
12
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13
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+886-2-23820491
August 2012
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