According to Art. 36 of the Telecommunications Management Act, direct foreign ownership of telecommunications services can be up to 49%, and total foreign ownership, whether direct or indirect, may not exceed 60%. These restrictions apply to entities that establish public telecommunications networks using telecommunications resources. The Telecommunications Management Act replaced the Telecommunications Act, which provided for a similar requirement for single Type I telecommunications operator (a facilities-based operator) (Art. 12). When the subordinate legislation under the Telecommunications Act will be fully repealed, the National Communications Commission will proceed with the formal repeal of the Act itself.

Chunghwa Telecom, the largest network operator in Taiwan, was originally a fully state-owned enterprise but was partially privatised in 2005, reducing the level of government's ownership. As of 2024, the government reportedly holds a 41% stake in the company. In addition, the government owns approximately 4.4% of the shares of Far Eastone Telecommunications Co., through state-linked entities, including Chunghwa Post Co. (2.9%) and the Labor Pension Fund (1.5%).

Art. 34 of the Telecommunications Management Act obliges operators with significant market power to implement accounting separation across their various service lines. However, the Act does not impose a requirement for functional separation.

Taiwan has appended the World Trade Organization (WTO) Telecom Reference Paper to its schedule of commitments.

The National Communications Commission (NCC), the executive authority responsible for the supervision and administration of telecommunications services, operates independently of the government in its decision-making processes. In accordance with Art. 8 of the National Communications Commission Organization Act, the NCC is required to exercise its functions autonomously and in conformity with the law. Under Art. 9, all matters that fall within the NCC’s remit, except those that Commission meeting resolutions have delegated to internal units through the administrative hierarchy, must be carried out on the basis of resolutions adopted at Commission meetings.

Under the Statute for Investment by Foreign Nationals, all foreign investments must receive approval from the Investment Commission of the Ministry of Economic Affairs (Art. 8). Foreign investment, as defined by the Statute, includes: (a) holding shares issued by a Taiwanese company or contributing to its capital assets, (b) establishing a branch office in Taiwan, or (c) providing a loan to the invested enterprise in cases of (a) or (b) for more than one year (Art. 4).
According to Art. 7, foreign investment is prohibited in industries that may threaten national security, public order, good customs and practices, or public health, as well as in sectors listed on the negative list. On the other hand, foreign investment in restricted industries must be approved by the Investment Commission under Art. 8. It has been reported that "regulatory and legislative scrutiny of select investments, on grounds unrelated to national security, contributes to ongoing concerns about the predictability of Taiwan's investment approval procedures.

Cross-border transfers of personal data are, in principle, permissible under the Personal Data Protection Act (PDPA), unless expressly prohibited or restricted by the relevant central competent authorities. Pursuant to Art. 21 of the Act, such authorities may impose limitations on cross-border data transfers under the following circumstances: (i) where the transfer would compromise significant national interests; (ii) where the transfer is restricted or prohibited under an international treaty or agreement; (iii) where the recipient jurisdiction lacks adequate legal safeguards for personal data, thereby potentially infringing upon the rights or interests of data subjects; or (iv) where the transfer is intended to circumvent the provisions of the PDPA. Notably, this regulatory framework was previously codified in Art. 24 prior to the 2010 amendment of the Act.
On 25 September 2012, the National Communications Commission issued a general directive prohibiting communications enterprises—including telecommunications carriers and broadcasting operators—from transferring subscribers’ personal data to the People’s Republic of China (PRC), citing the inadequacy of data protection legislation in mainland China. Subsequently, in January 2022 and February 2023, the Ministry of Health and Welfare and the Ministry of Labour, respectively, issued rulings prohibiting social work offices and human resources agencies from transferring the personal data of their service recipients to the PRC, based on similar concerns regarding insufficient legal protections. Finally, on 30 September 2025, the Ministry of Health and Welfare prohibited drug wholesalers and retailers from transferring personal data to China, Hong Kong and Macao, except in limited circumstances, due once again to the inadequacy of personal data protection laws in those jurisdictions.

Art. 7 of the "Statute For Investment By Overseas Compatriots" excludes overseas compatriot investors from sectors deemed harmful to national security, public order, good customs, or public health, or otherwise prohibited by law, and requires prior approval for investment in restricted industries, with the Executive Yuan responsible for periodically reviewing and updating the relevant classifications. Art. 8 sets out the core screening mechanism by requiring these investors to submit investment applications, including detailed plans and supporting documents, for approval by the Ministry of Economic Affairs, which must decide within one month, or within two months if additional sectoral approval is needed. Art. 9 enforces compliance by obligating investors to remit their approved capital contributions within a prescribed time limit, and empowers the competent authority to revoke investment approvals if the investment is not implemented accordingly, unless an extension is granted for valid reasons. Art. 3 defines overseas compatriot investors as Taiwanese nationals residing abroad who make investments in Taiwan in accordance with this Statute.

Under Art. 73 of the "Act Governing Relations between the People of the Taiwan Area and the Mainland Area" of 1992, investment activities by any individual, legal entity, organisation, or institution from Mainland China are prohibited unless expressly permitted by the competent authorities and the Ministry of Economic Affairs. This restriction also applies to companies with investment links with Mainland China. According to Art. 3 of the "Measures Governing Investment Permit to the People of Mainland Area", restrictions apply to companies where individuals, legal entities, organisations, or institutions from Mainland China either (a) directly or indirectly hold more than 30% of the shares or the total contributing amount, or (b) exercise controlling power over the companies. Additionally, investment is prohibited under Art. 8 of the Measures if it results in (a) economic exclusivity, oligopoly, or monopoly, (b) political, social, or cultural sensitivity, or a threat to national security, or (c) a negative impact on national economic development or financial stability.

Under Art. 25 of the Patent Act of 1994, the application form for patents must be filled out in traditional Chinese, including the description, claim(s) and drawing(s). Initially, this information may be submitted in Arabic, English, French, German, Japanese, Korean, Portuguese, Russian, or Spanish. A Chinese translation must be submitted within a specified period, or the patent application shall be dismissed. In addition, according to Art. 11, an applicant who has no domicile or business establishment in the territory of Taiwan shall designate an agent to file patent applications and handle patent-related matters on their behalf. Eligible agents shall be limited to patent attorneys unless otherwise provided for by laws and regulations. Furthermore, non-residents cannot make a payment of any fees directly to the Taiwan Intellectual Property Office by any means, whether it be payment by bank account transfer, credit card, or check. The payment has to be made by an appointed representative, either residing or domiciled in Taiwan, such as a patent attorney.

Taiwan is a signatory of the World Trade Organization (WTO) Information Technology Agreement (ITA) of 1996 and its 2015 expansion (ITA II).

Art. 5 of the "Regulations Governing the Participation of Foreign Suppliers in the Procurement Not Subject to Any Treaties or Agreements" provides that, when a procurement project not subject to any treaty or agreement, the procuring agency may, based on actual needs, decide whether foreign suppliers are allowed to participate. Art. 2 further provides that, in procurements subject to a treaty or agreement, the procuring agency may decide whether to allow suppliers from countries not party to such treaty or agreement to participate.

Since 2022, Taiwan has enforced a ban on the use of Chinese-made electronics across central and local government agencies, public schools, state-owned enterprises, and contractors operating within official networks. This measure is grounded in the Executive Yuan’s directive titled "Principles on Restricting the Use of Products That Endanger National Cyber Security," originally issued in April 2019 and revised in November 2022. Although the directive does not explicitly mention China or specific companies such as Huawei, TP-Link, DJI, or Hikvision, it provides a regulatory basis for excluding ICT products deemed to pose cybersecurity risks.
Additionally, in December 2022, Taiwan’s Ministry of Digital Affairs (MODA) banned TikTok, Douyin (its Chinese counterpart), and Xiaohongshu from all public sector communication devices, including mobile phones, tablets, and desktop computers. These applications were classified as “harmful products against national information security” due to concerns over potential data access by the Chinese government and the risk of foreign influence operations. The ban was prompted by warnings from U.S. agencies, including the FBI, regarding the risks associated with TikTok’s data practices and algorithm. Although the measure currently applies only to government-issued devices, MODA is reportedly assessing the possibility of extending the restriction to the private sector.
On 31 January 2025, the Ministry of Digital Affairs imposed restrictions preventing government agencies and critical infrastructure operators from utilising DeepSeek’s products.

Art. 43 of the of the Government Procurement Act allows procuring entities to include in tender evaluations suppliers’ commitments to support domestic economic objectives, including local production, technology transfer, inward investment, or export promotion, provided these commitments do not exceed one third of the total evaluation weight. Art. 44 permits entities to award contracts preferentially to local suppliers who supply goods with at least 50% local value added or deliver services locally, even when a foreign supplier offers the lowest bid, so long as the awarded price does not exceed that bid by more than 3%, and the preference is justified by employment or industrial development policies and limited to a five-year period. These provisions apply only to procurements that are not subject to international treaties or agreements to which Taiwan is a party, such as the World Trade Organization Government Procurement Agreement.