An Analysis of Taiwan`s Investment in Guangdong

Abstract

Taiwanese business investment in mainland China has been concentrated in Guangdong province, due mainly to its geographical proximity to Taiwan via the Hong Kong gateway. This investment has focused on small and medium-sized enterprises. In the manufacturing industries, for example, the average amount invested per case is less than US$1 million. The percentage of Taiwan investment in manufacturing industries is 95 percent, concentrating in such industries as electronics, shoemaking, plastic production, etc. Most investment in Guangdong has clustered in the cities of the Zhujiang Delta-Guangzhou, Shenzhen, and Dongguan. Howeve, because of recent rising costs for real estate and labor in these areas, many of Taiwan’s investors have been gradually forced to move from Guangdong province.