Taiwan Firms May Partake in SOE Reform via JVs, M&As and Reorganizations
Liao Shumin
DATE:  Feb 28 2018
/ SOURCE:  Yicai
Taiwan Firms May Partake in SOE Reform via JVs, M&As and Reorganizations Taiwan Firms May Partake in SOE Reform via JVs, M&As and Reorganizations

(Yicai Global) Feb. 28 -- The Taiwan Affairs Office of the State Council and the National Development and Reform Commission have issued their Measures on Promoting Cross-Strait Economic and Cultural Exchanges and Cooperation today. These allow Taiwan-funded enterprises to participate in mixed-ownership reform of state-owned enterprises through joint ventures, cooperation, mergers, acquisitions and other means.

Of these 31 specific measures, 12 involve accelerating the equal treatment of Taiwanese companies with mainland firms. They prescribe that Taiwan-funded enterprises enjoy equal treatment with their mainland counterparts in participating in Made in China 2025 and the same preferential tax policies, and let them take part in key national research and development projects, infrastructure construction, government procurement and the reform to mixed-ownership of state-owned enterprises. The measures also clarify relevant policies on land use by Taiwan-funded firms and the subsidized settlement of their agricultural companies in central, western and northeast regions. They further support deepening cross-straits financial cooperation in micropayments, credit information services, syndicated loans and other areas.

The 19 measures also will gradually bestow on Taiwanese compatriots the same treatment for study, entrepreneurship, employment and living in the mainland as for mainlanders by opening 134 national vocational qualification exams to Taiwanese who can also apply for the Thousand Talents Program, Ten Thousand Talents Program and various other funds and projects. They further ease restrictions on market access for Taiwan's films and TV productions, books and other products.

The process of drafting the measures has fully considered the special circumstances and needs of Taiwan's people and companies, e.g. the office will continue to set up industrial cooperation zones across the strait in the central, western and northeastern regions, encourage Taiwan-funded enterprises to transfer and participate in the Belt and Road Initiative and expand the market access of radio and TV programs.

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Keywords:   Taiwan,State-Owned Enterprises Reform