Preferential tax policies to stay for Taiwan firms

Premier Li Keqiang pledged to continue preferential policies, including tax reductions, for Taiwan-invested corporations to help them counteract the mainland's economic slowdown and restructuring.

Even though the mainland is carrying out a campaign to clean up the arbitrary preferential policies provided by local governments to attract investment, Li assured Taiwan corporate leaders that policies included in existing contracts with Taiwan businesses will not be affected.

"That is because we are like brothers and sisters in a family," he said at a seminar with 11 Taiwan business leaders investing in Fujian.

Michael Chiang, president of TPK Touch Solutions, a leading touch screen manufacturer, said his company has been increasingly challenged by labor shortages and the infringement of intellectual property rights, an issue that "hurts his heart most".

Li said the protection of intellectual property rights is an irreplaceable part of the mainland's efforts to encourage industrial growth, and that protection should cover Taiwan businesses.

"We cannot let business leaders suffer from heartburn in addition to headaches," he said.