TAIWAN Law and Practice Contributed by: Stephen Wu, Yvonne Hsieh, Wei-Han Wu and Erica Chiu, Lee and Li, Attorneys-at-Law
party has filed an appeal in the High Administrative Court against the TFTC’s merger filing decision in the past five years. 9. Foreign Direct Investment/Subsidies Review 9.1 Legislation and Filing Requirements Taiwan welcomes and encourages foreign direct investment (FDI). Under the Statute for Investment by Foreign Nationals, which was promulgated on 14 July 1954 and further amended on 19 November 1997, all foreign investment must be approved by the Depart - ment of Investment Review of the Ministry of Eco - nomic Affairs in advance. FDI is generally permitted in Taiwan, except for certain specific businesses and industries in which foreign investments are prohibited or restricted due to con - cerns about national security, public order, environ - mental protection, public health, etc, such as aviation
and telecommunications. To provide a clear guideline on restricted and/or prohibited foreign investment, the Department of Investment Review has promulgated the “Negative List”, which sets forth the sectors in which foreign investment is either restricted or pro - hibited. Sectors that are not on the Negative List are open to foreign investment without any restriction (other than the requirement to obtain foreign invest - ment approval in advance). However, it is important to note that investors from the People’s Republic of China (PRC) are subject to different and stricter rules and regulations, and greater regulatory scrutiny. PRC investors may only invest in certain permitted businesses listed on the “Positive List” promulgated by the Department of Investment Review. The definition of a PRC investor is a PRC individual, legal person, organisation, other institution or their third-area company; a third-area company is deemed a PRC investor if 30% of its shares are held or controlled by a PRC individual, legal person, organisa - tion or any other institution.
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