The Taiwan Monthly

Feb. 2021

Trading Policies

Taiwan government redefines Chinese investment

The Ministry of Economic Affairs (“MOEA”) amended the “Measures Governing Investment Permit to the People of Mainland Area” and the “Interpretation of the Standard for Determining Whether a Third-Area Company Is an Investor of the Mainland Area” on December 30, 2020, with immediate effect.


There are three key points for the amendment:

  1. Redefine the third-area company;
  2. Chinese investors or third-area companies who would like to control or acquire Taiwanese unlisted companies should apply for permission; and
  3. The regulators shall restrict the companies owned by the Chinese Communist Party, government or army to invest in Taiwan.


The calculation of a third-area company’s capital contribution shall be based on the “Tiered Recognition Calculation Method.” About the interpretation of the standard for determining a third-area company, please refer to the following URL:


For further inquiries, please contact Chien-Ti Chang at