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SEF lauds China's decision to reinstate incentives for Taiwan firms

Taipei, May 13 (CNA) Taiwan's semi-official negotiating body expressed satisfaction Wednesday with a recent decision by China's State Council to reinstate preferential treatment, including tax breaks, for Taiwan-invested companies in China. Chou Jih-shine (???), vice chairman of Taiwan's Straits Exchange Foundation (SEF, ???), said the decision was an indication that China attaches great importance to Taiwanese businesses operating there. Chou said, however, that he hopes China will communicate with the SEF on any new policies relating to the rights of Taiwanese companies, to allay concerns among these companies about increasing costs. Last year, China's State Council issued a directive for all local governments to withdraw their investment tax incentives to allow the central government to set up an integrated investment administration system. Taiwanese firms were expected to be most heavily affected by the new policy since they had long enjoyed more local government incentives than other foreign companies in China. The SEF subsequently sent a letter to its Chinese counterpart, the Association for Relations Across the Taiwan Straits (ARATS, ???), demanding compensation for Taiwanese firms that had suffered losses as a result of the policy. SEF Chairman Lin Join-sane (???) also reiterated the request during a meeting with ARATS President Chen Deming (???) on April 10 in Xi'an. On April 22, it was reported that Chinese Premier Li Keqiang (???) had given the assurance that the preferential treatment of Taiwan companies will be reinstated to help offset the effects of a business recession caused by a restructuring and slowdown of China's economy. One week later, the SEF again wrote to the ARATS, asking for a written commitment that efforts would be made to protect Taiwan companies from the effects of the China State Council directive. The State Council then issued a second directive, telling local governments to reinstate their preferential treatment of Taiwanese firms in line with the contracts signed with those companies. (Chou Yi-ling and Evelyn Kao)

Updated : 2021-09-28 15:17 GMT+08:00