EXECUTIVE YUAN FINALIZES THE SCOPE OF ENCOURAGED INVESTMENT IN FRIENDLY COUNTRIES

01/01/1999

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On 28 October 1998, the Executive Yuan promulgated the Applicability Standards for Investment in Friendly Countries by Important Investment Enterprises to Complement Foreign Policy, based on the Statute for Upgrading Industries. The standards contain eight articles, of which the most noteworthy is Article 2, which provides rules for determining qualifications. To qualify as an enterprise that supports foreign policy by investing in ROC allies, an enterprise must fulfill the following requirements:

The investment plan must be of substantive benefit to the economic development of a friendly country, and must be for a production enterprise with ROC corporate shareholders.

The paid-in capital in the investment plan, or the increase in paid-in capital, must exceed NT$30 million.

The investment plan must be completed within three years of approval.

The Standards are in effect from the time of their promulgation until 31 December 1999.