A gathering to commemorate the 40th anniversary of issuing Message to Compatriots in Taiwan is held at the Great Hall of the People in Beijing, capital of China, Jan. 2, 2019. (Xinhua/Pang Xinglei)

The National People's Congress Standing Committee on Saturday approved an amendment to a law on Taiwan compatriots' investment to protect and welcome more investment from the island of Taiwan. 

The amendment, which goes into effect on January 1, 2020, streamlines the procedures for investment by Taiwan compatriots in the mainland by scrapping requirement of government examination and filing registration, making it easier for Taiwan compatriots to set up companies in the mainland.

Taiwan compatriots may set up companies that are wholly or partly funded by investors from the island, or adopt other forms of investment stipulated by laws, administrative regulations or the State Council, the amendment said.

The move showed the goodwill of the mainland to help Taiwan compatriots' investment better integrate with the mainland economy, by granting them more freedom to choose ways of investing in the mainland, Lin Jiang, a professor of economics at Lingnan University College at Sun Yat-sen University, told the Global Times on Sunday. 

"The law may help Taiwan-based companies better cooperate with their mainland counterparts and scientific institutions amid their industrial transformation and upgrading," he said.

Chinese Commerce Minister Zhong Shan said earlier on the revision of the law that the revision is designed to be coordinated with a new foreign investor law passed in March which has simplified management procedures for foreign investors. "We want our Taiwan compatriots to share the benefits of this great change," Zhong said.

The preferential policies make it more convenient for Taiwan compatriots to invest in  the mainland, Alan Zhou, president of the Hangzhou Association of Taiwan Compatriots Investment Enterprises, told the Global Times on Sunday.

Based in Hangzhou, East China's Zhejiang Province, Zhou said he has already benefited from the improved investment environment and simplified procedures with special windows offering one-stop services for Taiwan compatriots.

"We only need to go once to get all the stamps and approvals, as many legal procedures have been simplified and put in one office. Many licenses can be finalized within one day," he said, adding that simplified legal procedures allow Taiwan people to put more effort into running their business on the mainland instead of worrying about documents.


Newspaper headline: Amended law to attract Taiwan investment