For Taiwanese companies, mainland China has long been both boon and bane: Factories and other investments in the mainland are crucial to their success, yet their rights in legal disputes there have been somewhat hazy.
Beijing tried to ease Taiwanese businesses’ concerns last week by signing a new investor protection agreement with Taipei. It lays out avenues for resolving disputes between Taiwanese investors and mainland companies and government entities.
But as with many things in China, the value of this agreement for Taiwanese will depend more on Beijing’s implementation than the wording. The new dispute resolution mechanism also requires the Taiwanese and mainland companies to first agree on an arbitration method, which analysts say may diminishes its practical value.