Chongqing - Chongqing has introduced new regulations to boost Taiwan investment, which will take effect on January 1, 2025. The announcement was made at a press conference on Tuesday.

The new rules emphasize the protection of investment rights and interests for Taiwan investors. They aim to enhance economic and social development integration between China's Chongqing and Taiwan. The updated regulations are seen as a vital step in strengthening cross-strait economic ties.

A press conference on Chongqing's new regulations aimed at promoting Taiwan-related investments was held. (Photo/Chen Zhan)

According to the press conference, Chongqing issued its previous investment protection regulations for Taiwan investors in August 1998. However, these provisions no longer align with higher-level laws or the region's evolving economic and social needs.

The revised regulations were deliberated and approved by the 11th and 12th sessions of the sixth Chongqing Municipal People's Congress Standing Committee, following extensive research. This process involved visits to five other provinces and cities in China, 28 districts and counties in Chongqing, six Taiwan-related parks, and 37 Taiwan-funded enterprises in the city.

The new regulations are designed to address several issues, such as the inadequate implementation of equal treatment for Taiwan investors, invisible barriers to market entry, and insufficient investment services.

A key example cited by Taiwan entrepreneurs involves the protection of rights in the traditional Chinese medicine industry. One Taiwan businessman reported that his company, engaged in wolfberry extraction, seeks legal safeguards for its investment in Chinese medicine preparations. 

In response, the new regulations will include provisions encouraging Taiwan investors to engage in areas such as Chinese medicinal material planting, processing, and production, aligning with relevant industry regulations to promote the growth of the Chinese medicine sector.

Above all, the new regulations focus heavily on investment, encouraging Taiwan investors to participate in developing Chongqing's modern manufacturing cluster system and establishing high-tech industries. Taiwan businesses are also being urged to contribute to the construction of Chongqing's industrial clusters, enhancing the city's position as a key player in the regional and global supply chains.

The regulations aim to expand investment in manufacturing and support Taiwan investment in infrastructure, innovation, technology, new energy, environmental protection, and smart manufacturing. 

These sectors are considered vital to Chongqing's long-term economic development, and the new rules are designed to make them more attractive to Taiwan businesses looking to expand in these areas.

Furthermore, the new regulations strengthen regional cooperation between Chongqing and Chengdu. Both cities will jointly organize economic and trade activities with Taiwan to boost their regional influence.

For instance, the regulations support pairing collaborations between Chongqing's districts and neighboring cities in Sichuan, including Tongnan District with Suining City, Yongchuan District with Luzhou City, Dazu District with Ziyang City, and Kaizhou District with Dazhou City. 

This initiative aims to guide Taiwan businesses in strategically positioning their industrial chains within the Chengdu-Chongqing economic circle, fostering the joint development of industries and enhancing cross-strait economic cooperation.