ABSTRACT
This book argues that the changing interaction between Taiwanese businessmen and local Chinese governments was mainly influenced by the combined interests of central and local governments. To illustrate this main argument, Chapter 2 identifies the sorts of interests which can be served by Taiwanese investors for both Chinese central and local governments. The central Chinese government aimed to achieve cross-Strait reunification by using Taiwanese investors as messengers or pressure groups, so it created a macro environment that encouraged local governments to show special favour to Taiwanese investors. Under the central government’s encouragement, two incentives consequently motivated local government officials to favour Taiwanese investment: career promotion for individuals and obtaining more resources from the central government for the locality. Chapter 2 explains that the central and local Chinese governments’ different interests with regard to using Taiwanese businesses were complementary. The central government provided incentives for local governments to attract Taiwanese investment. By attracting Taiwanese investors, local officials consequently promoted their own interests and further enhanced the central government’s ability to achieve its political goal.
