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I have an Israeli passport with a ten-year visa to the US and a multiple entry visa to China.

Is it possible for me to take a ferry from Xiamen to Kinmen and then to Taipei and come back to Xiamen?

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If it's a real "multiple entry visa" it should be fine. Israelis get ninety days in Taiwan visa free. I'm Australian and just took the ferry from Fuzhou to Matsu to Taipei with no problems. I say "real" because China issues both double-entry and multiple-entry visas. Two entries is literally multiple but not what China calls multiple. In my case I have no entries left for China, but in your case if you really have a "multiple entry visa", meaning "more than two entries" then you should be fine. – hippietrail Feb 1 '14 at 12:36
I'd see the main issue as being your visa status relative to Taiwan. This is of course completely independent from your mainland China visa. Presumably you are aware of what is or isn't required at that end. – Russell McMahon Feb 2 '14 at 4:47

The answer on your question: YES

As written on Taiwan's goverment website you may enter to Taiwan for up to 90 days without visa.

With multiple entry visa to China you may return to Xiamen as well.

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