Nastiness Diagnosis. Anthropology. Religion. Gender. Justice. A Personal Notepad For the General Public.
when China began to open its doors in 1979, Taiwan prohibited FDI under the ‘three no’s’ policy (no contact, no negotiation, no compromise).
From the late 1980s, several important changes in Taiwan’s economic and strategic situation gave rise to pressures for reform. In particular, sharp increases in labour and land prices (a by-product of rapid growth) began undermining Taiwanese competitiveness and discouraging new industrial investment. Investing offshore became essential to boost competitiveness and productive investment. Between 1987 and 1989, the government introduced a number of policies to more actively promote Taiwanese FDI, expanding the types of outward investment permitted, eliminating financial standards for outward investing firms and introducing an automatic approval and reporting system to reduce red tape.
the unintended outcome of promoting a leakage of Taiwanese funds into China via third parties, particularly Hong Kong. Taiwan’s overseas FDI strategy throughout the 1990s
When these policies failed to stop the flood, President Lee Teng Hui introduced the ‘Go Slow, Be Patient’ policy in 1995, permitting investments in higher value-added industries in China so long as Taiwanese firms kept their roots (and advanced technologies) in Taiwan.
More recently, Taiwan’s quest for WTO entry – and eventual accession – have provided the strongest impetus for the liberalisation of both inward and outward FDI.
Regulatory controls on inward FDI were substantially reduced over several years in preparation for Taiwan’s accession to the WTO. Notwithstanding restrictions in a few sensitive areas, Taiwan’s manufacturing sector is now around 99 per cent open to FDI.
Remarkably, Taiwan now accounts for the third highest share of patents per capita, after the USA and Japan, registered by the US Patent Office.
. Taiwan’s investment policy towards China was one of five key topics for deliberation and, as a result of EDAC’s findings, the government replaced the ‘No Haste, Be Patient’ policy with the ‘Active Opening, Effective Management’ policy