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Taiwan's Investment Policy in Mainland China : A Political Economy Analysis

Dr. Sun Yat-Sen overthrew the Ching Dynasty and set up the Republic of China (China) in 1911. While China was in the situation of internal disorders in 1949, the Communist Party of China acquired the reins of government, and the Nationalist Party of China retreated to Taiwan. After two sides of Taiwan Straits confronted each other for three decades, Mainland China carried out the Four Kinds of Modernization in 1976 and has been proceeding a series of reformation since 1978. Under the influence of open policies, the strained political relationship of two sides has become milder, and the economical exchange has been getting closer.
Under effect of liberalism and market-oriented economy, Taiwan businessmen realized the transition of Mainland China market quickly and excavated enormous business opportunities. In the beginning, Taiwan businessmen entered Mainland China market by the form of small and middle-sized companies and gradually have engaged in large-scale investment in recent years. The interactive model of both sides has been progressively established by tight economical interchange.
Liberalism and market-oriented economy have prevailed among big cities along the coast of Mainland China since two sides began economical interaction from 1978. Whatever political cost it takes, Mainland China does its best to rope in Taiwan businessmen and attempt to influence the policies of Taiwan government. The Nationalist Party of China in Taiwan oriented by Guidelines for National Unification adopted the policy of free marketed-oriented economy in the past. However, not until the crisis of Mainland China missiles happened in 1996, has Taiwan government chosen to select the Southward Policy to avoid relying on the economy of Mainland China excessively. On one side, the authorities of Taiwan have done its best to replace Hong Kong to become Asia-Pacific Regional Operations Center in recent years. On the other side, Taiwan has tried to repair the relation of both sides since the crisis of Taiwan Straits in 1996.
Because Chen Shui-bian was elected as the president of Taiwan in the Taiwan president election of 2000, Taiwan went through the transfer of the regime for the first time. However, although President Chen showed good wills to Mainland China, Mainland took the attitude which refers to listening what President Chen says and watching what he does. Even though the promise of two sides entering WTO in 2001 respectively might bring the reconciliation, the interaction of both sides has seldom made concrete progress since 2000. After both sides participated in WTO, two sides have to face the challenges containing the differences of politics and economy, the confronting position of the system of government and the intense exchange of economy. Most importantly, how to build up the interactive channel of politics and economy is an urgent topic for both sides.
The studying theory of this thesis is use the method of mutual demonstration from the vision of politics and economics, statistics analysis method, document analysis method, and historical method. Because the politics, economics, and political economy are related to the concepts of government, nation, and market, this thesis use the integrating vision to discuss the topic about how Taiwan businessmen invest in Mainland China. The basis of the thesis is depended on free market theory and national economism theory, assisting with the dependent theory and new liberalism focusing on global trend.
The peaceful model of interactive developments of both sides which may follow the example of UN will make it possible to form an organization from the Chinese Economical Circle in Asia having the most population on earth to the Community of Asia.
Even the political relationship of both sides seems tough and it is hard to negotiate a peaceful treaty, but the economical relationship of cross-Strait relies on each other more and more. As time goes by, the concept and ideas of both sides will integrate gradually. Therefore, both sides are trying to set up the duct of communication by legislation. So, if both sides want to make benefits, they should restart to negotiate, based on ¡§Mini-Three Links¡¨ to expand the way of communication.
There are some points in this research: 1. The strategies of the investment of Taiwan¡¦s corporations are influenced by cross-Strait¡¦ politics. 2. The vision of Taiwan¡¥s companies to the market of Mainland China is gradually fading away. 3. The dependence of Taiwan¡¦s companies on both side governments is rising and falling. 4. What Taiwan¡¦s corporations want is to have air traffic or navigation proceeded as soon as possible for saving the cost. 5. Taiwan¡¦s corporations hope both governments can put the political problem aside and do their best to develop economy. There are some suggestions: the government of both sides should establish a peaceful and interactive environment of politics and economy, and Taiwan¡¦s corporation should think about the strategy about global overall arrangement and how to use the advantageous resources in Taiwan.
The development of economy can¡¦t depart from the element of politics, and the simple factors of economy can¡¦t explain the success or failure of the development. In short, economy is functioning in the political environment in Taiwan government and in Mainland China as well. Therefore, Taiwan has to adjust the strategy actively to tie in the policy that Mainland China has held. So far, there are some blind spots between cross-Strait relationships. For the future, the key point of Taiwan¡¦s success is the cooperation between the government and corporations in Taiwan and to take the strategy of rooting in Taiwan and mapping out an overall planning and management in the world. Eventually, building up a harmonious cross-Strait relationship as quickly as possible is the best profit to Taiwan¡¦s corporations and the people of both sides.

Identiferoai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0627104-212033
Date27 June 2004
CreatorsSu, Chin-pao
ContributorsChin-Peng Chu, Teh-Chang Lin, Kuang-tai Shu
PublisherNSYSU
Source SetsNSYSU Electronic Thesis and Dissertation Archive
LanguageCholon
Detected LanguageEnglish
Typetext
Formatapplication/pdf
Sourcehttp://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0627104-212033
Rightsunrestricted, Copyright information available at source archive

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