TAIWAN
Since July 1992, last amended in June 2022
Since December 2020
Since December 2020
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Indicator Screening of investment and acquisitions
Act Governing Relations between the People of the Taiwan Area and the Mainland Area (臺灣地區與大陸地區人民關係條例)
Measures Governing Investment Permit to the People of the Mainland Area (大陸地區人民來臺投資許可辦法)
Measures Governing Investment Permit to the People of the Mainland Area (大陸地區人民來臺投資許可辦法)
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.
Coverage Horizontal
TAIWAN
Since May 1944, entry into force in January 1949, last amended in May 2022
Pillar Intellectual Property Rights (IPRs) |
Indicator Practical or legal restrictions related to the application process for patents
Patent Act (專利法)
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.
Coverage Horizontal
TAIWAN
N/A
Pillar Intellectual Property Rights (IPRs) |
Indicator Participation in the Patent Cooperation Treaty (PCT)
Lack of participation in the Patent Cooperation Treaty (PCT)
Taiwan is not a party to the Patent Cooperation Treaty (PCT). However, any applicant from a WTO member who files a patent application in Taiwan based on a PCT application may claim a right of priority if the PCT application is legally sound.
Coverage Horizontal
TAIWAN
Since May 1928, as amended in July 2003, last amended in June 2022
Pillar Intellectual Property Rights (IPRs) |
Indicator Copyright law with clear exceptions
Copyright Act (著作權法)
The Copyright Act provides a clear regime of copyright exceptions that follows the fair use model, which enables the lawful use of copyrighted work by others without obtaining permission. Art. 65, as amended in July 2003, lists the acts that shall be noted as the basis for the determination of fair use. In determining whether the exploitation of work complies with the reasonable scope or other conditions of fair use, all circumstances shall be taken into account, and in particular, the following facts shall be noted as the basis for determination: (i) the purposes and nature of the exploitation, including whether such exploitation is of a commercial nature or is for nonprofit educational purposes; (ii) the nature of the work; (iii) the amount and substantiality of the portion exploited in relation to the work as a whole; (iv) effect of the exploitation on the work's current and potential market value.
Coverage Horizontal
TAIWAN
Reported in 2021, last reported in 2025
Pillar Intellectual Property Rights (IPRs) |
Indicator Enforcement of copyright online
Lack of adequate enforcement of copyright online
It is reported that there are notable levels of online copyright piracy through illicit streaming devices or illicit Internet Protocol Television services that unlawfully retransmit telecommunications signals and channels containing copyrighted content via dedicated web portals or third-party applications.
Coverage Horizontal
Sources
- https://web.archive.org/web/20250705122536/https://ustr.gov/sites/default/files/files/Issue_Areas/Enforcement/2025%20Special%20301%20Report%20(final).pdf
- https://web.archive.org/web/20250702082826/https://ustr.gov/sites/default/files/files/Press/Reports/2025NTE.pdf
- https://web.archive.org/web/20231206061658/https://ustr.gov/sites/default/files/files/reports/2021/2021%20Special%20301%20Report%20(final).pdf
- Show more...
TAIWAN
N/A
Pillar Intellectual Property Rights (IPRs) |
Indicator Adoption of the WIPO Copyright Treaty
Lack of signature of the WIPO Copyright Treaty
Taiwan has not signed the World Intellectual Property Organization (WIPO) Copyright Treaty.
Coverage Horizontal
TAIWAN
N/A
Pillar Intellectual Property Rights (IPRs) |
Indicator Adoption of the WIPO Performances and Phonograms Treaty
Lack of signature of the WIPO Performances and Phonograms Treaty
Taiwan has not signed the World Intellectual Property Organization (WIPO) Performances and Phonograms Treaty.
Coverage Horizontal
TAIWAN
Since May 1999, last amended in August 2012
Pillar Public procurement of ICT goods and online services |
Indicator Exclusion from public procurement
Regulations Governing the Participation of Foreign Suppliers in the Procurement not Subject to any Treaties or Agreements (外國廠商參與非條約協定採購處理辦法)
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.
Coverage Horizontal
Sources
- https://web.archive.org/web/20201027000320/https://law.moj.gov.tw/ENG/LawClass/LawAll.aspx?pcode=A0030072
- https://web.archive.org/web/20250721223506/https://tw.leetsai.com.cn/ltp-special-column/handling-principles-followed-by-various-agencies-in-taiwan-when-they-consider-if-foreign-suppliers-are-to-be-all...
TAIWAN
Since January 1996, last amended in January 2020
Pillar Intellectual Property Rights (IPRs) |
Indicator Effective protection covering trade secrets
Trade Secrets Act (營業秘密法)
The Trade Secrets Act provides a framework for effective protection of trade secrets. According to Art. 1, trade secrets include any method, technology, process, formula, program, design, or other information that may be applied in the course of production, sales, or business operations. The information shall be protected only if commercially valuable because of its secrecy and reasonable confidentiality measures have been taken to keep it secret. In addition, according to Art. 15, the protection of trade secrets of foreign nationals is based on the principle of reciprocity. In principle, if a foreign national's home country does not deny protection to the trade secrets of Taiwan nationals, and the foreign national's trade secrets meet the requirements of Taiwan's Trade Secret Act, the foreign national will enjoy the protection of such trade secrets under Taiwan's Trade Secret Act.
Coverage Horizontal
TAIWAN
Reported in 2023, last reported in 2025
Pillar Public procurement of ICT goods and online services |
Indicator Exclusion from public procurement
Ban on Chinese-made ICT goods, TikTok and DeepSeek
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.
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.
Coverage Chinese-made ICT goods, TikTok, and DeepSeek
Sources
- https://law.moda.gov.tw/LawContent.aspx?id=FL091047
- https://www.taipeitimes.com/News/taiwan/archives/2022/10/25/2003787690
- https://ocacnews.net/article/322942
- https://www.taiwannews.com.tw/news/4741706
- https://www.context.news/big-tech/us-tiktok-ban-which-other-countries-have-banned-the-app
- https://time.com/6971009/tiktok-banned-restrictions-worldwide-countries-united-states-law/
- https://web.archive.org/web/20260331130239/https://moda.gov.tw/en/press/press-releases/15104
- https://web.archive.org/web/20260331130436/https://digitalpolicyalert.org/event/26543-ministry-of-digital-affairs-adopted-order-blocking-use-of-deepseek-products-in-government-agencies-and-critical-infrastructure
- Show more...
TAIWAN
Since June 2019, last amended in June 2023
Pillar Telecom infrastructure & competition |
Indicator Passive infrastructure sharing obligation
Telecommunications Management Act (電信管理法)
Pursuant to Art. 31 of the Telecommunications Management Act entities holding a dominant position in the market are required to share their telecommunications infrastructure with other service providers. In accordance with the definition provided in Art. 3.4, this obligation also applies to passive infrastructure.
Coverage Telecommunications sector
TAIWAN
Since May 1998, last amended in May 2019
Pillar Public procurement of ICT goods and online services |
Indicator Other limitations on foreign participation in public procurement
Government Procurement Act (政府採購法)
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.
Coverage Horizontal
TAIWAN
Since May 1998, last amended in May 2019
Pillar Public procurement of ICT goods and online services |
Indicator Other limitations on foreign participation in public procurement
Government Procurement Act (政府採購法)
According to Art. 97 of the Government Procurement Act, procuring entities may adopt measures aligned with relevant laws and regulations to support SMEs by ensuring that a minimum percentage of government procurement value is contracted or subcontracted to them. To facilitate this, a non-binding yearly target percentage (YTP) has been set, currently at 45%. For procurements meeting the threshold for publication, entities may specify that tenderers must be SMEs or encourage the winning bidder to subcontract portions of the contract to SMEs.
Coverage Horizontal
TAIWAN
N/A
Pillar Public procurement of ICT goods and online services |
Indicator Signatory of the WTO Agreement on Government Procurement (GPA) with coverage of the most relevant services sectors (CPC 752, 754, 84)
Lack of coverage of CPC 754 in the WTO Government Procurement Agreement (GPA)
Although Taiwan is a signatory to the WTO Government Procurement Agreement (GPA), its coverage schedules do not include "telecommunications-related services" (CPC 754) and only partially cover "telecommunication services" (CPC 752) and "computer and related services" (CPC 84), which are important service sectors for digital trade.
Coverage Telecommunications related services
TAIWAN
Since June 2019, last amended in June 2023
Since October 1958, last amended in December 2013
Since October 1958, last amended in December 2013
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Indicator Maximum foreign equity share
Telecommunications Management Act (電信管理法)
Telecommunications Act (電信法)
Telecommunications Act (電信法)
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.
Coverage Telecommunications sector
Sources
- https://web.archive.org/web/20250712172439/https://law.moj.gov.tw/ENG/LawClass/LawAll.aspx?pcode=K0060111
- https://web.archive.org/web/20250712181819/https://law.moj.gov.tw/ENG/LawClass/LawAll.aspx?pcode=K0060001
- https://web.archive.org/web/20250712182444/https://freedomhouse.org/country/taiwan/freedom-net/2024
- https://web.archive.org/web/20231003071428/https://iclg.com/practice-areas/telecoms-media-and-internet-laws-and-regulations/taiwan
- https://web.archive.org/web/20250712182357/https://www.elitelaw.com/wp-content/uploads/2019/12/The-Technology-Media-and-Telecommunications-Review-Third-Edition-2012-Published-by-Law-Business-Research-...
- https://www.ncc.gov.tw/chinese/news_detail.aspx?site_content_sn=8&is_history=0&pages=0&sn_f=51020
- Show more...
