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Taiwan Affairs Office of the State Council and the Ministry of Civil Affairs　

Article 1 These measures are formulated for the purpose of
guaranteeing the legal rights and interests of the Associations of
Enterprises Funded by Taiwan Compatriots (hereinafter referred as to
AETCs), accelerating economic communications and cooperation between
the Mainland and Taiwan and normalizing the administration,
according to the Law of the People's Republic of China on Protection
of the Investments of Taiwan Compatriots as well as the
Administrative Regulations of Associations Registration.

Article 2 AETCs refer to the associations legally established
voluntarily which principal members are the enterprises funded by
Taiwan compatriots (hereinafter referred as to ETC) and registered
in the Mainland China.

Article 3 AETCs shall abide by the State's constitutions, laws and
regulations and shall not endanger reunification of the country,
security of the State and solidarity of the nations, and shall not
impair the State's interests, public interests or citizen legal
rights and interests.

Article 4 The State protects the legal rights and interests of AETCs
and their members as well as legal activities according to their
corporate charters.

Article 5 AETCs take a purpose of serving their members and
accelerating the communications and cooperation between the Mainland
and Taiwan. Their key operations include:
(1) Developing association and communication activities;
(2) Providing the members with consulting services on State' laws
and regulations and economic information;
(3) Communicating between the members and local governments and
relevant administrative organs, reporting opinions, suggestions and
demands on production and operation from the members, and
maintaining the legal rights and interests of the members.
(4) Accelerating the economic communications and cooperation between
the local economies and Taiwan Region.
(5) Hosting social and commonweal activities;
(6) Helping the members to solve the problems met in the work and
life.
Article 6 The Taiwan Affairs Office of the State Council and
relevant Taiwan affairs offices of local peoples' governments are
the supervising organs for the operations of AETCs. The relevant
Taiwan affairs offices of local peoples' governments and civil
affairs administrations are responsible for directing the operations
of AETCs and administrating their registration affairs.
Article 7 The members of AETCs are divided into entity ones (as the
principal body) and individual ones.An entity member is an ETC
joining the AETC in the name of its business name, which is
registered locally. An individual member is a Taiwan compatriot
joining the local AETC in the name of himself, which business is
registered locally, as well as a person who provides services to the
AETC in a proper name.
Article 8 The following requirements shall be met with for
establishing an AETC:
(1) In a region where there mass ETCs;
(2) Over 50 founder members including no less than 30 entity
members;
(3) A fixed operation site;
(4) Full-time staff suitable for developing operation activities;
(5) Legal fund sources.
(6) Other requirements stipulated in the laws, regulations, and
rules.
Article 9 Any establishment of an AETC shall be examined and
approved by the competent administration registered according to
relative regulations and reported to and recorded by the Taiwan
Affairs Office of the State Council.
Article 10 Local Taiwan affairs offices shall fulfill their
responsibilities as competent administrations and provide services
and assistances to AETCs.
(1) Directing the activities performed by AETCs' according to laws;
(2) Assisting AETCs in communicating with local governments and
relevant administrations;
(3) Assisting AETCs in organizing activities related to major
economic exchanging and major conferences. (4) Assisting AETCs in
organizing trainings on laws and economic operations;
(5) Providing assistance to the commonweal activities hosted by
AETCs;
(6) Providing assistance in solving problems met by AETCs in their
operations and difficulties met by their members in their production
and life; and
(7) Providing other necessary assistances.
Article 11 The chairman of an AETC shall be assumed by a Taiwan
businessman. Any chairman and vice-chairman shall meet with
following requirements:
(1) Abiding by the principle of one China, upholding the
reunification of the country, and actively and willingly striving
for accelerating the economic communications and cooperation;
(2) A Taiwan businessman with competitive capability in economy and
his business shall have a certain large scale.
(3) A Taiwan businessman with good personal quality, who enjoys a
prestige among local Taiwan businessmen.
(4) Enthusiastic about the work of the association, with strong
working capability.
(5) Good in health, capable of routine job.
(6) Not a legal representative of any other association; and
(7) With full capacity for civil conduct.
Article 12 In order for AETC to communicate with the administration
of government easily and provide better services for the members,
the responsible person of the Taiwan affairs office of the local
people's government may accept the invitation from the AETC to hold
a proper post in the AETC. The person to be engaged for a post in
the AETC shall be selected according to the procedures of the
constitutions of the AETC and shall not take any pay from the AETC¡£
Article 13 The employment of common staff by an AETC shall be
accordance with relevant regulations of the State.
Article 14 For receptions of visits of key visiting groups or
persons from Taiwan, the AETC shall report to the local competent
administration beforehand for record.Major activities to be hosted
by an AETC including establishment, expiration of office terms and
celebration shall be reported to the competent administration for
approval. Any transregional activities to be hosted by an AETC shall
be reported to the competent administration for reporting to its
upper level administration for approval.
Article 15 No AETC shall join a foreign chamber of commerce or an
overseas association. An AETC shall operate according to its
constitution independently without any subjection relationship with
any other organization, and shall not accept any consign from any
other organization or individual to pursue any activity incompliant
with its constitution.

Article 16 Any receipt of member fees, donations or financial
assistances shall be accordance with the tenet and business scope
specified in its constitution. The receipt and use of such member
fees, donations or financial assistances shall be reported to the
competent administration and registration administration authority
and shall be publicized in a proper way.

Article 17 The competent administration and registration
administration authority shall grant commends to the AETCs with
excellent performances during their legal operations.

Article 18 For an AETC established prior to the enforcement of these
Measures, any incompliance with these Measure shall be corrected
within six months since the enforcement of these Measures according
to relative regulations in these Measures.

Article 19 Any circumstance that have not mentioned in these
Measures shall be dealt with according to the Administrative
Regulations of Associations Registration as well as relevant
regulations of the State.

Article 20 The Taiwan Affairs Office of the State Council is
responsible for the interpretation of these Measures.

Article 21 These Measures shall enter into force as of April 20, 2003.