On December 21, 2012, the Department of Foreign Investment Administration of the Ministry of Commerce ("MOFCOM") issued a notice to seek public opinions on the Interim Measures for Recognition of Re-investment Made by Taiwan Investors via a Third Place (Draft for Comments) (the "Draft"). The deadline for submission of comments was December 31, 2012. The Draft provides that Taiwan investors that invest for establishing enterprises in the Mainland China by using companies, enterprises, or other economic organizations directly or indirectly owned or controlled by them at a third place as investors ("Third Place Investors") are entitled to make applications in accordance with the Draft for such Third Place Investors to be deemed as Taiwan investors. The Draft provides a definition of Taiwan investors, including: 1) individuals holding Taiwan identification documents; 2) enterprises registered and established in Taiwan and operating substantial business in Taiwan, including companies, trust, trading companies, partnerships or other institutions; and 3) enterprises solely established by the above mentioned individuals or enterprises in Taiwan targeting to invest in the Mainland China through a third place. As for the "third place", the Draft defines it as any country or region excluding Mainland China and Taiwan.
The Draft also states that the MOFCOM, Taiwan Affairs Office of the State Council, provincial commerce authorities and provincial Taiwan affairs offices are responsible for recognizing the re-investment made by Taiwan investors via a third place, and the application documents for recognition of such re-investment should be submitted to the provisional commerce authorities at the place where the re-invested enterprises are located.
The full Chinese text of the Draft is available here.