Abstract: Taiwan businessmen have invested in Chinese mainland for more than 30years. In this paper, the course of Taiwantrader’s Investment inMainland are divided into three stages according to the time, region andindustry. This paper also finds out that there are five factors which influencethe shift of the investment focus of Taiwan's trader, they are hardenvironments as Geography and location, soft environment as Policies,development level of productivity, bunching effects from the linkage of theIndustry Chain and the driving force from the industry chain.
Key words:the Investment of Taiwan businessmen, Investment Focus, Influence Factors
1 Introduction
In 1979, in order to find a way out for thedevelopment of the companies, Taiwanbusinessmen started to crash out all kinds of limitation to invest Chinesemainland. More than 30 years passed by, the direct investment of Taiwanbusinessmen has become an important part for mainland’s absorbing foreigndirect investment. In the mean time, Chinese mainland also becomes the biggest investmentregion.
Firstly, this study is to focus on StageChange and area differentiation of the direct investment of Taiwanbusinessmen in Chinese mainland, and then to analysis the causes which influencethe shift of the investment.
2 Stages of the Investment ofTaiwan businessmen in Chinese Mainland
There are significant changes for the investment of Taiwanbusinessmen in Chinese mainland not only in areas but in stages. Currently,there are two schools in the field of stage partition. Taiwan Electrical andElectronic Manufacturers’ Association (TEEMA) divided it into three stages(TEEMA , 2003). In the first stage, the traders tried to transferred some lowvalue-added products to Fujianprovince. In the second stage, some higher value-added products were transferredto Pearl River Delta economic zone to produce and the last stage was from 2003,they transferred those negative growth products in production and sale such asElectromechanical Product and IT products to Shanghai,Shandong, Jiangsuand Zhejiangprovince. Li (2007) divided the investment stages into 4 parts, the secretinvestment stage between 1981 and 1987, transformed trial investment stagebetween 1988 and 1991, expanded stage between 1992 and 1996 and the last stagewas focused on hi-tech products. He (2007) divided the stage with anotherviewpoint, he reported Taiwantraders were started from 1980s, this stage was represented by thelabor-intensive industries, and then the second stage which represented by thecapital-intensive industries, from the beginning of the 21 century, theinvestment has been expanded to the technology-intensive industries.
We can easily make out that although thoseresearch findings above has divided the stages from different viewpoint, butthere is no uniform and complete definition by far.