Provisions of Shanghai Municipality on the Protection for the Investment Rights and Interests of Taiwanese

（Adopted at the 23rd Session by the Standing Committee of the 14th Shanghai Municipal People's Congress on September 24, 2015; amended in accordance with the Decision on Amending Some Local Regulations of This Municipality made at the 4th Session of the Standing Committee of the 15th Shanghai Municipal People’s Congress on May 24, 2018）

Article 1

With a view to protecting the investment rights and interests of Taiwanese, encouraging Taiwanese to make investments in this Municipality, promoting the economic and trade exchanges and the integrated economic development between this Municipality and the Taiwan region, these Provisions are formulated in accordance with the Law of the People’s Republic of China on the Protection of Investments of Taiwanese and other laws and administrative regulations, and in the light of the actual circumstances of this Municipality.

Article 2

The investment of Taiwanese referred to in these Provisions means the acts of Taiwanese who establish companies, enterprises or other economic entities in the Taiwan region or in Mainland regions, or in other countries or regions, as well as the acts of an individual who sets up a company or an enterprise or other economic entities as an investor in this Municipality, or the acts of an individual who makes an investment through equity participation in a company, an enterprise or other economic entities in this Municipality in accordance with the relevant state regulations.

Article 3

These Provisions apply to the protection of the investment rights and interests of Taiwanese and their other rights and interests within the administrative areas of this Municipality.

Article 4

This Municipality follows the principle of equality, justice and transparency in protection of the investment rights and interests of Taiwanese.

Article 5

The municipal and district people's governments shall strengthen the leadership of the protection of the investment rights and interests of Taiwanese, establish and improve the corresponding working mechanism, and enhance the protection of the investment rights and interests of Taiwanese.

The Taiwan affairs administrative departments of the municipal and district people's governments shall be responsible for organizing, guiding, administering and coordinating the protection of the investment rights and interests of Taiwanese.

The relevant municipal departments of development and reform, economic informatization, commercial affairs, education, science and technology, public security, civil affairs, finance, human resources and social security, planning and land resources, health and family planning, tax affairs, industry and commerce administration, intellectual property rights, housing and urban/rural construction administration, financial services, culture, broadcasting, film and TV shall, according to their own respective functions and duties, jointly do well the work of protecting the investment rights and interests of Taiwanese.

Article 6

The investment-making, investment income and other legitimate rights and interests of Taiwanese shall be protected by law. Companies, enterprises and other economic organizations invested or with equity investment by Taiwanese (hereinafter collectively referred to as Taiwanese-invested enterprises) shall enjoy management autonomy according to law.

A state organ or unit shall not inspect Taiwanese-invested enterprises beyond the provisions of laws, rules and regulations, shall not force or force in a disguised form Taiwanese-invested enterprises to participate in various training, appraisal and verification, and assessment activities, and shall not apportion charges to them, charge additional fees, or raise the charging standards.

Taiwanese-invested enterprises shall carry out production and operating activities in accordance with the law, establish a sound management system, carry out honest management, and assume social responsibility.

Article 7

The Municipal Association of Taiwanese-invested Enterprises shall, in accordance with laws, rules and regulations, conduct activities, strengthen ties with the relevant government departments, and provide services for members such as explanation of the government industrial policies, consultancy and evaluation, education and training, market exploration, etc., thus protecting the members’ investment rights and interests.

The Taiwan affairs administrative departments under the Municipal People's Government and other relevant departments shall provide guidance and services for the Municipal Association of Taiwanese-invested Enterprises.

Article 8

The Municipal Service Center for Taiwanese shall provide public services for Taiwanese and Taiwanese-invested enterprises through legal advice, policy consultation, and coordinated handling of complaints and disputes.

Article 9

This Municipality shall establish a unified public information service platform for investment by Taiwanese as well as a mechanism of information-sharing. The relevant departments of commercial affairs, industry and commerce administration, and public-security border entry/exit shall provide Taiwanese-investment-related information and data for the Taiwanese-investment public information service platform.

The Taiwanese-investment public information service platform shall provide all kinds of information and policy consulting services for Taiwanese and Taiwanese-invested enterprises.

Article 10

The legally registered and established arbitral institutions of this Municipality shall conduct arbitration on contract disputes or other disputes between Taiwanese investors and other parties in accordance with laws and regulations and international practice. The arbitral institutions in this Municipality are encouraged to create arbitration service windows for Taiwanese to provide them with arbitration-related legal services.

The Taiwanese who meet the conditions may be employed as arbitrators of the arbitral institutions of this Municipality.

Article 11

Taiwanese shall be supported to invest in establishment of financial institutions, professional financial service entities, financing guarantee institutions, and small-loan companies. Relevant policy supports shall be given to the Taiwanese-invested branch financial institution which is registered in or moved to this Municipality after being restructured into a corporate financial institution as well as to the headquarters of financial institutions newly registered and established, or newly moving to this Municipality.

Article 12

Where a Taiwanese-invested enterprise has established a regional headquarter in this Municipality, it shall be granted with convenience in fund management, border entry/exit administration, employment permit, introduction of competent personnel and so on in accordance with the relevant regulations.

Article 13

Taiwanese-invested enterprises shall be supported to participate in the construction of technological innovation centers in this Municipality, and to establish R & D centers, participate in the construction of a public service platform, take up governmental scientific research projects, and solve key technological problems for the industrial chain jointly with the related units; and they shall receive relevant policy support in application of scientific and technological achievements and in incentives for innovation and entrepreneurship talents.

Article 14

Taiwanese shall be encouraged to invest in the fields of financial services, shipping services, business services, professional services, cultural services, social services, and advanced manufacturing within the China (Shanghai) Pilot Free Trade Zone.

Article 15

Taiwanese-invested enterprises shall be guided and encouraged to accelerate the implementation of industrial restructuring and upgrading in accordance with the strategic requirements for innovative transformation of the State and this Municipality; of those enterprises, the traditional manufacturing enterprises shall be supported to carry out industrial restructuring, technological transformation for energy conservation and emission reduction, and clean production. Taiwanese shall be supported to invest in specialized, finely-tuned, niche, and up-to-date small and medium-sized enterprises, for which energy supply shall be guaranteed.

Taiwanese-invested enterprises may utilize their existing housing and land to set up modern services including information services, research and design, creative industries, etc. in accordance with the relevant regulations.

Article 16

Financial institutions shall be supported to provide special credit granting for the Taiwanese-invested enterprises in this Municipality. Financial institutions may support the development of Taiwanese-invested enterprises through such services as intellectual property rights hypothecation, equity pledge hypothecation, supply-chain financing, and export-credit insurance financing.

Taiwanese-invested enterprises shall be supported to broaden the channels of direct financing, and shall be encouraged to be publicly-listed or receive refinancing in the stock market. Taiwanese-invested enterprises shall be encouraged to raise funds by means of issuing business debts, corporate bonds, long- and medium-term instruments, and short-term financing certificates, and shall also be encouraged to practice financing through the equity right trust institution of this Municipality.

Small and medium-sized Taiwanese-invested enterprises shall be supported to issue collective bond certificates and collective instruments. In the case of the intermediary service charges of grading, auditing, guarantee, legal consultation, etc. incurred by issuing collective bond certificates and collective instruments, they may apply for fund support from the municipal competent administrative department in charge of small and medium-sized enterprises.

Article 17

Taiwanese-invested enterprises shall be supported to make patent applications, trade mark registration and authorship right registration.

In making patent applications, Taiwanese-invested enterprises may obtain financial aid in accordance with the relevant regulations of this Municipality. Taiwanese-invested enterprises may obtain such assistance services as general consultation and rights protection consultation through the IPR aid center of this Municipality. Where they meet the requirements, they may apply for special aids. Taiwanese-invested enterprises shall be supported to conduct the activities of IPR evaluation, registration, transaction transfer, etc. through the IPR transfer transaction market.

The relevant departments of the municipal and district people's governments shall strengthen protection of the intellectual property rights of Taiwanese-invested enterprises, and handle, according to law, acts of infringement against the intellectual property rights of Taiwanese-invested enterprises.

Article 18

No nationalization and tax-collecting shall be exercised for the investment by Taiwan investors. In particular cases, in accordance with the needs of the public rights and interests, tax may be collected on the investment of Taiwan investors in accordance with the legal procedures, but the corresponding compensation shall be made. The compensation shall be equivalent to the value of the investment just before the tax-collecting decision, including the interest calculated at the reasonable interest rates from the date of tax-collecting to the date of payment, and can be converted into foreign currency according to law, so as to be remitted back to Taiwan or abroad.

The municipal and district people's governments and their relevant departments shall compensate, according to law, for the movable or immovable property requisitioned from Taiwan investors owing to contingencies. The immovable or movable property requisitioned shall be returned to the requisitioned person. The requisitioned immovable or movable property shall be compensated for according to law if it is damaged or lost.

Article 19

The youth entrepreneurship fund created in this Municipality may provide consultation services, project evaluation and financial support for young Taiwanese who have established a business in this Municipality.

All kinds of university student practice bases in this Municipality may provide internships and training opportunities for Taiwanese students studying in the universities of this Municipality.

The relevant human resources departments and public-security entry/exit administration shall provide convenience as required for Taiwanese students who studied in colleges and universities in Taiwan or in other countries and regions but are practicing internship or taking up employment in enterprises and public institutions of this Municipality.

The Municipal Service Center for Taiwanese shall provide employment consultation and guidance services for young Taiwanese who are willing to take up employment in this Municipality.

Article 20

Taiwan investors, Taiwanese legally employed in this Municipality as well as their spouses, children and parents living together with them in this Municipality shall enjoy equal medical and health service treatment as the permanent residents of this Municipality, and shall, in accordance with this Municipality's relevant regulations, enjoy the basic public health service such as the protective inoculation of the national immunization planning projects. Medical institutions shall write down and preserve the medical treatment documents as required, and provide convenience for the visiting Taiwanese to apply for fee reimbursements from health insurance agencies in the Taiwan region.

Taiwan investors and their children living together with them in this Municipality as well as the legitimate Taiwanese employees and their children living together with them may, in accordance with relevant regulations, enter this Municipality's kindergartens, and primary and secondary schools (including secondary vocational schools), and the children shall enjoy equal treatment as the pupils of this Municipality, and shall be entitled to proper care in accordance with relevant policies.

Taiwanese who establish a business or are legitimate employees in this Municipality may apply for public rental housing in this Municipality in accordance with relevant provisions.

Article 21

Taiwan investors and legal Taiwanese employees may take the social insurance in accordance with the relevant provisions.

The spouses and children of Taiwan investors living together with them in this Municipality as well as the spouses and children of legitimate Taiwanese employees living together with them in this Municipality may take the basic medical insurance of city and town residents in this Municipality if they conform to the relevant regulations of this Municipality.

Article 22

Taiwanese who own a housing unit in this Municipality shall have the relevant rights and interests of a property owner according to law.

Taiwan investors and legal Taiwanese employees living in this Municipality shall participate in the community public-benefit activities, and guarantee their right to know the situation, the right to make suggestions, and the right to participate in community public affairs according to law.

Article 23

Any Taiwan investor who has an investment rights and interests dispute with other entities or who believes that his/her legitimate rights and interests are violated may be solved by the following means:

1. being settled through consultation or mediation;

2. applying for arbitration;

3. lodging a complaint to the relevant government department;

4. applying for administrative adjudication or administrative reconsideration; and

5. filing a suit to the people’s court.

Article 24

The Taiwan affairs administrative departments or other relevant departments under the municipal and district people's governments shall, within 60 days of receipt of the complaints lodged by Taiwanese and Taiwanese-invested enterprises, give a reply to the complainant about the handling status, unless otherwise provided for by the laws, rules and regulations.

Where the complaints lodged shall be handled by governments or their relevant departments, the Taiwan affairs administrative departments under the municipal and district people's governments shall, within 15 days, transfer the complaints to the relevant departments for handling. The relevant departments shall handle the complaints within a prescribed time limit in accordance with the preceding paragraph, and shall, while replying to the complainant, notify in writing the same-level Taiwan affairs administrative department of the handling of the case.

Article 25

Where the relevant departments of the municipal and district people's governments and their staff commit one of the following acts in violation of the provisions of these Provisions, the higher administrative department or supervisory organ shall give punishment to the person-in-charge with competent responsibility and other persons with responsibility according to law:

1. failing to deal with, according to law, the complaints lodged by Taiwanese and Taiwanese-invested enterprises;

2. failing to provide information and data for the Taiwanese investment information public service platform in accordance with these Provisions;

3. conducting illegal inspection over the Taiwanese-invested enterprises;

4. forcing or forcing in a disguised form the Taiwanese-invested enterprises to participate in various training, appraisal, verification and assessment activities;

5. apportioning charges to Taiwanese-invested enterprises, or charging additional fees from them, or raising the charging standards for them; and

6. implementing tax-collecting and confiscation against the investment, or movable and immovable property of Taiwan investors.

Article 26

These Provisions shall be effective as of November 1, 2015.