At a meeting today with hair and beauty industry representatives and Legislator Chen Shei-saint to discuss the cross-strait services trade pact, Premier Jiang Yi-huah stressed that hair and beauty businesses on each side of the Taiwan Strait will gain equal access to the other's market, and that Taiwan's industry will be opened to mainland investments only and not workers.
The premier gave assurances that protective measures will be strictly implemented. "Any mainland investor found to be in serious violation of local regulations will be required to divest their investments."
Regarding concerns about investments, Ministry of Economic Affairs (MOEA) head Chang Chia-juch reiterated that the industries will be opened on a completely equal footing to investors seeking single-investor or joint ventures or partnerships. One-person operated salons will not be permitted. If a mainland entity wishes to invest in Taiwan, it must have minimum capital of NT$6 million (US$200,000). It may also post two employees to the island—limited to shareholders, directors or managers—and the hairdressers and beauticians they hire must be Taiwanese. The MOEA Investment Commission will review all investment cases, penalize businesses engaging in price-cutting competition or monopolizing the market, and in severe cases order divestiture of investments.
In response to suggestions that the government should provide more guidance to help salons upgrade themselves, MOEA Department of Commerce (DOC) Director-General Reed Yu said the government is working out details with the Taipei-based China Productivity Center and has already begun communicating with business operators. After designated the DOC as the contact window for gathering public suggestions, the premier said the MOEA has set aside a budget for holding international seminars and job-training events to help strengthen local businesses.
The industry leaders also felt that the Act of the Cooperative Education Implementation in Senior High Schools and the Protection of Student Participants' Rights was overly restrictive. To better instruct vocational students in the hair and beauty trade, they suggested increasing the number of hours students spend in training from 80 to 84 hours every two weeks. Director-General Wu Ching-shan of the K-12 Education Administration under the Ministry of Education replied that an amendment to this effect has already been submitted to the Legislative Yuan. The amendment is being looked at carefully as it affects students' physical and psychological development but Premier Jiang is optimistic that it will pass.
Industry representatives also raised concerns about tax matters. They agree that sales receipts should be issued when salons sell hair or beauty products, but suggested setting a higher business revenue tax base than the NT$200,000 (US$6,667) the government had in mind to avoid stifling the industry's growth. Premier Jiang instructed the Ministry of Finance and other agencies to study these suggestions and resolve the issues quickly.
Lastly, Jiang said the services agreement is a necessary pathway for Taiwan to reach globalization and liberalization goals. Its benefits far outweigh the disadvantages. He apologized for not being able to communicate with the industry in advance and ordered the MOEA and other agencies to make certain that any trade negotiations going forward are first discussed in depth with industry associations and business owners.