Two of China’s many popular streaming services, iQiyi and Tencent’s WeTV, may easily be barred from operating in Taiwan next month as the federal government preps to close regulatory loopholes that allowed them to offer community adaptations of the services of theirs through partnerships. But WeTV and iQiyi will still be accessible if members are actually eager to, for instance, start using cross-border transaction offerings to buy subscriptions in China and Deal deal with slower connections.

In an announcement posted this week, Taiwan’s Ministry of Economic Affairs said Taiwanese corporations as well as people will be prohibited from providing services for OTT businesses took in mainland China. The proposed regulation is going to be open to public comment for 2 days before it takes effect on September 3.

Though Taiwan, and that includes a public of about 24 million men and women, is self-governed, the Chinese government boasts it as a territory. The proposed laws means Taiwan is actually joining other nations, such as India and also the United States, in taking a worse stance against Chinese tech companies.

WeTV as well as iQiyi set up calculations in Taiwan through “illegal” partnerships, the Ministry of Economic Affairs mentioned in the announcement of its, functioning through their Hong Kong subsidiaries to strike agreements with Taiwanese organizations.

In April, the NCC declared that mainland Chinese OTT firms are certainly not permitted to operate in Taiwan under the Act Governing Relations between People of the Taiwan Area as well as the Mainland Area. Cabinet spokesperson Kolas Yotaka said at the moment that Chinese firms and their Taiwanese partners were operating within “the borders of the law.”

But NCC spokesperson Wong Po-Tsung stated the proposed regulation isn’t targeted exclusively at Chinese OTT operators. According to the Taipei Times, he stated “the act was vital because the cable tv service operators have expected that the commission put on across-the-board specifications to regulate all audiovisual service os’s, which should incorporate OTT offerings. It wasn’t stipulated just to address the problems caused by iQiyi and other Chinese OTT operators.”

Wong included that Taiwan is a democratic country and its government wouldn’t inhibit people from watching content at iQiyi as well as other Chinese streaming services.

After the act is passed on, Taiwanese organizations that injure it is going to face fines of NTD $50,000 to NTD $5 million [about USD $1,700 to USD $170,000].

In a proclamation to TechCrunch, a spokeperson from iQiyi International, an iQiyi subsidiary based in Singapore, mentioned it’s playing good attention to the draft bill.

“China’s mainland entities have constantly been permitted to hold out industrial activities in the Taiwan region since the enactment of the Act Governing Relations Between the People of the Taiwan Area as well as the Mainland Area,” she added. “As streaming services are certainly not labeled as’ special industries’ under the Act, such providers shouldn’t turn into the particular goal of legislation.”