Legal Aspects of Taiwanese Trade and Investment in the People's Republic of China

Tzyh-Trong Chen
1995
Since the beginning of the 1980s, one of the most frequently debated issues concerning the Nationalist Republic of China on Taiwan (hereinafter, Taiwan) and the Communist People's Republic of China on the mainland (hereinafter, China or the PRC) has been investment and trade relationships between the two. Taiwan and the PRC, divided since 1949 and with a background of extreme hostility, both continue to claim to be the sole legitimate government of "China". However, they are de facto two
more » ... de facto two exclusive entities with lawful international personalities which exist separately on either side of the Taiwan Straits. Although the PRC has made continuous efforts to promote direct trade and investment with Taiwan, Taiwan still insists that all contacts should be indirect. According to the government of Taiwan's three-stage unification plan published in March 1991, direct business activities with the PRC can be conducted only if there is an equal, reciprocal relationship between the two regimes. While various scenarios are possible for future relationships, the most likely appears to be a compromise; a co-existence with economic and political co-operation coupled with legal modus vivendi. The purpose of this study is first, to provide an academic analysis of the legal aspects of Taiwan-PRC trade and investment links which also promotes the cause of stronger Taiwan-PRC economic relations unilaterally; Secondly, in the broader context, to stimulate creative discussion of possible solutions for direct mutual exchange of economic activities between the two. The analysis of the legal aspects of Taiwanese trade and investment in the PRC includes an examination of the methods of legal settlement for handling business disputes. This thesis employs the methodology of comparative analysis in approaching the topics it treats. Its theoretical standpoint is based on the argument that the model of former East-West trade and investment, arising from policies of mutual public non-recognition, reveals many close similarities to the characterist [...]
doi:10.25501/soas.00033776 fatcat:2nez4s3tvfdghadvsirixgqiim