New: Book Report: Cyber China (part four)

Two more essays from the book Cyber China

Barry Naughton The Information Technology Industry and Economic Interactions Between China and Taiwan

This article had an interesting factoid. A large part of investment in China high-tech comes from Taiwan. But this is illegal. So, in fact, a large part of investment in China high-tech comes from unmarked accounts in the Cayman Islands, Virgin Islands, Samoa, Bermuda, and Panama. So Taiwan doesn't want to get engulfed in China. Yet Taiwanese manufacturers elbow each other out of the way to do deals to get cheap Chinese engineers and assemblers.

Tse-Kang Leng Global Networking and the New Division of Labor Across the Taiwan Straits

"Made in China, by Taiwan". This paper looks at some of the strange relations that come up when Taiwan and China do business. There are a lot of little Chinese startups. They often rely on Taiwanese VC firms. But Taiwan still has heavy restrictions on doing business with mainland China. You don't want to be too open with a country that wants to engulf you. Dell wants to do business with mainland China, so Dell moved a business center from Taiwan to Hong Kong--because the Taiwanese restrictions were too tight. Taiwan is stuck with a difficult balancing act.

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Posted 2005-03-25