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The purpose of this paper is to compare the capital system and governance of Mainland Chain with that of Taiwan.

This a comparative study drawing upon the main principles of the legal systems of China and Taiwan.

Due to historical, institutional social factors, the capital system of the Mainland China differs greatly from that of Taiwan. There is room for both sides across the Taiwan Straits to learn from each other by taking into consideration the respective features and deficiencies of their regulations.

The comparison and contrast study of the two capital systems helps them to improve respectively and boost economic development as well as legal construction.