Chinese investment in Taiwan: challenge or opportunity for Taiwan’s high-technology industrial development?

Cross-Strait economic activities are no longer one-directional. The Taiwanese government opened the doors to Chinese investment in 2009.The aim of this paper is to address the crucial question: What are the impacts of Chinese investment on Taiwan’s high-technology industrial development? Two further questions immediately follow: Will Chinese investment put Taiwanese industrial development at risk? Will an influx of Chinese investment provide a turning point for Taiwanese industry?The paper starts with a review of Chinese investment in Taiwan under the framework of the ECFA and then explains the justification for focusing on high-technology industry in Taiwan. It then outlines the main elements of Chinese outwards foreign direct investment (OFDI) before seeing to answer the above research questions.Fieldwork for this paper was conducted from December 2014 to March 2016. Interviewees include Chinese investors from Beijing, Shanghai and Kunshan, and consultants from a Taiwanese institute created to promote industrial development