Prospects for Taiwan’s Outward Investment in China

Chien-Hsun Chen

MPRA Paper from University Library of Munich, Germany

Abstract: The similarities in language and culture have given Taiwanese companies an edge in employing ethnic ties through personal connections or “guanxi” to overcome competitive and resource disadvantages. Such relational linkages facilitate Taiwanese investment in China. Since Taiwan has orchestrated a very efficient production network to serve its customers, cross-strait investment and trading activities have driven the formation of close collaborative relationships between Taiwanese and Chinese industries. China is now developing its domestic market to promote economic growth. This is bound to affect cross-strait industrial division of labor, which is not only accelerating the localization of Taiwan businessmen in the Mainland, but also further weakening the connections between Taiwanese businessmen and their parent companies in Taiwan. In the financial sector, Taiwanese banks would do well to find their own niche markets and formulate appropriate strategies, instead of following the practices of large international banks.

Keywords: Taiwan’s outward investment in China; global supply chain; business strategies; globalization (search for similar items in EconPapers)
JEL-codes: F15 F21 F23 (search for similar items in EconPapers)
Date: 2023-03-04
New Economics Papers: this item is included in nep-cna and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/116578/1/MPRA_paper_116578.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:116578

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().