ABSTRACT
This chapter examines the exodus of Taiwanese businesses at the start of the 1990s, and the rise of a complex global supply chain that was triggered by leading US companies, particularly in electronics and IT industries, outsourcing their production. It looks at the Taiwanese industries that have clustered in China to demonstrate how the operation of global supply chains has caused the formation of a division of labor between Taiwan and China, based on "complementarity," which can be summed up in the phrase "made by Taiwan but made in China". The chapter discusses how the relocation of Taishang to China has been incorporated into China's economic transformation and regional development plans. It assesses the progress that has been made in cross-Strait integration since 2008, when a new government was elected in Taiwan, and explains why an anti-integration movement broke out in 2014. The chapter addresses the cause of the "Sunflower Movement" and its impact on cross-Strait relations in the future.
