The Business and Investment Environment in Taiwan and Mainland China

The following sections are included:

• Contents

The following sections are included:

• Theoretical Analysis of FDI by Large Multinational Enterprises
  • The theory of imperfect competitive markets and multinational foreign direct investment
  • Theoretical analysis of decisive factors for multinational direct investment
    • Theory of enterprise advantage
    • The internalization theory of direct investment by multinational companies
    • The location theory and the eclectic theory of international production

• Theoretical Analysis of FDI by Small- and Medium-Sized Enterprises in Taiwan

The following sections are included:

• Status Quo in Mainland China
  • Analysis of overall national investment trends
  • Analysis of investment by industry
  • Analysis of sources of incoming investment
  • Analysis of investment methods and investment performance
  • Changes of foreign capital in Mainland China
  • Forecast of foreign capital investment trends in Mainland China in future years
    • Foreign capital investment in Mainland China will increase in future years
    • Foreign companies will significantly increase investment in R&D, but mainly in research
    • Future investment will tend towards sole proprietorship
    • Investment decisions of foreign multinational companies in Mainland China are mainly determined by overseas headquarters
    • Foreign companies in Mainland China will invest mainly in the delta regions

• Status Quo in Taiwan
  • Analysis of overall national investment trends
  • Analysis of investment by industry
  • Analysis of sources of incoming investment

The following sections are included:

• R&D and Innovative Mechanisms

• Human Resources and Human Literacy

• Information Technology

• Social Infrastructure

• Relevant Indices for the Introduction of a Foreign Knowledge-Based Economy
  • IDC
  • EIU (The Economist Intelligence Unit)
  • IMD
  • Harvard University and WEF
  • Brown University
  • WEF

The following sections are included:

• Current Status of Electronics Information Industries in Mainland China
  • Mainland China's IC design industry
  • Mainland China's semiconductor equipment industry
  • Mainland China's IC manufacturing industry
  • Mainland China's electronic machinery industry
  • Mainland China's mobile phone industry
  • Mainland China's PC industry

• Economics of Electronics Information Industry's Operations
  • The industrial structure of electronics information industry
  • The high-end products ratio is continuously increasing
  • Software products market is rapidly increasing
  • Benefit increasing rate is higher than scale increasing rate for the first time
  • Internationalization level is gradually increasing
  • Industrial concentration is increasing further

• Analysis of Mainland China's IC Industry Development
  • Status quo of Mainland China's IC industry
  • Important ratios in Mainland China's IC industry development

• Analysis of Mainland China's Automotive Electronics Market
  • Mainland China's automotive electronics market profile
  • The development directions and dilemmas faced by the automotive electronics industry in Mainland China
  • The market and developing opportunities for major automotive electronics in Mainland China
    • Rapid development of the market for in-car navigation systems
    • Development of vehicle body electronics
    • Automotive safety system — the fastest growing field
    • Development of automotive power supply control

• Analysis of Mainland China's Consumer Electronics Market

• Analysis of Mainland China's Mobile Storage Industry

• Analysis of Mainland China's IC Design Industry
  • Current situation of IC design industry in Mainland China
  • Operational characteristics of IC design industry in Mainland China
    • More precise market positioning and focus on consumer electronics
    • Overall enhancement of design
    • Incomplete industrial chain

• Analysis of Mainland China's IT Industry
  • Current situation of the IT industry in Mainland China
  • Prospects of the IT industry in Mainland China
    • Digital TV will bring industrial structural changes
    • Industrial storage management software market will open up
    • Products with security — low price and high efficiency
    • Full development of the application of IP technology
    • The rise of wireless applications and the new generation internet
    • Digital homes will experience partial market breakthrough

• Analysis of Mainland China's Electronic Components Distributors
  • Foreign and domestic distributors in the Mainland Chinese market
  • Many competitors share the 3C market — different distributors specialize in different aspects
  • Provision of technical support is the long-term development direction for distributors
  • Lack of trust is the major challenge faced by distributors at the moment
  • The construction of the IT system is emphasized
  • The bottleneck of finding suitable talent

The following sections are included:

• Current Status of Information Technology and Electronics Industries in Taiwan

• Development Background of Industries
  • Taiwan's semiconductor manufacturing industry
  • Taiwan's IC packaging and test industries
    • IC packaging
    • IC test
  • Taiwan's electric industry
    • Heavy electric equipment industry
    • Household electrical appliances industry
    • Wire and cable industry
  • Taiwan's information industry
    • PC industry
    • Notebooks

• Industrial Structure and Characteristics
  • Taiwan's semiconductor industry
    • Industrial structure
    • Industrial characteristics
  • Taiwan's IT industry

• Business Opportunities
  • Taiwan's semiconductor industry
  • Taiwan's PC industry
  • Taiwan's communication industry
  • Taiwan's electro-optical industry
  • Taiwan's wire and cable industry

The following sections are included:

• Index of the Economic Environment
  • Analysis of economic factors in the investment environment
    • Market scale
    • Globalization
    • Industrial structure
    • Factors for foreign investors' participation and withdrawal
    • HR analysis
    • Channel of finance capital
    • Inflation rate
  • Analysis of an economic environment's potential
  • Analysis of foreign-related factors in the investment environment
    • Analysis of foreign debt in Mainland China
    • Analysis of Mainland China's international reserves

• Analysis of Systematic Factors in the Investment Environment
  • Sociocultural factors
  • Political environment
  • Governmental control over the environment
    • Governmental administrative efficiency
    • Governmental incorruptibility
    • Legal protection

• Economic Policies and Laws
  • Trade and customs policies
  • Tax collection
  • Intellectual property rights
  • Policies and regulations relating to foreign investments

• Infrastructure and Natural Factors in the Investment Environment
  • Energy resources infrastructure
  • Transportation infrastructure
  • IT infrastructure
  • Analysis of natural factors in the investment environment

• Comparison of Regions within Mainland China
  • Infrastructure
  • Globalization
  • Skills and technological advantages
  • Barriers for participation in and withdrawal from the domestic market
  • Flexibility of the labor force market
  • Participation of the private sector
  • Financial conditions
  • Governmental efficiency
  • Tax

• Changes in the Investment Environment in Mainland China After its Entry into WTO
  • Honoring its agreements
    • Opening up the regulations for entry into Mainland China's market
    • Removal of operational restrictions
    • Maintenance of fair trade environment
    • Transparent policies
  • Changes in the market environment
    • Market economy orders
    • Acceleration of the adjustment of economic structure
    • Strengthening infrastructure
  • Changes in the administrative system and legal environment
    • Changes in the administrative system
    • Changes in the legal environment

• Adjustment of foreign investment policies
  • Strengthen intellectual property rights and create a fair and open market environment
  • Further open the service trade industry
  • Encourage foreign investment in western China
  • Encourage foreign investment in high-tech industries and satellite industries
  • Positively explore new approaches of foreign investment

The following sections are included:

• Evaluation of Taiwan's Business Environment

• Competitive Strengths and Weaknesses in Taiwan's Information Technology and Electronics Industries

• Development Strategy of Taiwanese High-Tech Industries

• Taiwan's Development Strategy to Become a Knowledge-Based Economy

The following sections are included:

• Knowledge Capital
  • Quantity and quality of invention and design patent
    • Number of approved inventions and design patents in the US
    • Quantity of approved domestic patents
    • Number of papers published in SCI
    • Number of patents that have been cited: Current Impact Index (CII)
    • Number of technical literature that each patent cited: Science Linkage Index (SLI)
    • Number of invented patent rights possessed per 1 million inhabitants
  • Quantity and quality of human resources
    • Number of research personnel per 10,000 inhabitants
    • Number of research personnel per 10,000 labor inhabitants
    • Number of university students per 10,000 inhabitants
    • Number of R&D personnel per 1,000 inhabitants
    • Acquirability of high-skilled workers
  • Public basic technology, cultural capacity and development
    • Science education (0–10 points)
    • Interest of young people in science (0–10 points)
    • Amount of free time (per 1,000 persons) to participate in culture and art activities
    • Ratio of entertainment, culture and education expenditure to household income (%)
    • Ratio of government education expenditure to GDP (%)

• Innovative Capability
  • Quality and quantity of research institutes
    • Technological research institutes' R&D budget/each researcher (million NTD)
    • Ratio of research personnel with a master's degree or higher (%)
    • Number of approved foreign patent applications within the technology project (application)
    • Number of spin-off companies for technology projects
  • Quality and quantity of enterprise R&D
    • Number of enterprise R&D personnel per 1,000 inhabitants
    • Ratio of enterprise R&D to gross industrial production (%)
    • Number of domestically approved patent applications for science-based parks (application)
  • Encouraged level of newly established enterprises and innovative activities
    • Ratio of the foreign capital within venture investment to the domestic capital (The data is the amount venture companies invested in the current year, 100 million NTD)
    • Acquiring liability of venture capital (0–10 points)
    • Ratio of R&D expenditure to GDP (%)
    • Ratio of IT industry R&D expenditure to GDP (%)
    • Ratio of investment in IT and electronics industry to investment in total basic infrastructure and innovative reconstruction (%)
    • Ratio of the successful venture capital to the venture investment amount (%)
    • Ratio of the applied amount of the med/long-term funds that the government grants start-up businesses (%
    • Ratio of the IT industry output value to GDP (%)
  • Knowledge circulation among industrial, academic, and research circles
    • Industry-academy cooperation (0–10 points)
    • Technology cooperation among enterprises (0–10 points)
    • Knowledge transfer sufficiency (0–10 points)
  • Degree of international collaboration in innovative R&D
    • Purchase amount of foreign technology (100 million USD)
    • Amount of technology export (100 million USD)
    • Coverage ratio (%) of license fees and royalty
    • Amount of the joint venture investment with listed/OTC enterprises among OECD countries
  • Performance of innovative capability and entrepreneurship
    • Industrial cluster innovative environment
    • Connection between innovative infrastructure and industrial cluster environment
    • Research manpower of science and engineering
    • Innovation policies
    • Innovative orientation enterprises
    • Establishment of start-up businesses (0–10 points)
    • Entrepreneurship (0–10 points)
    • Positiveness of introducing new technology to enterprises

• Application of Information Technology
  • Degree of e-industry
    • Ratio of enterprises that engaged in relevant e-commerce activities
    • New information technology application that meets enterprises' demand (0–10 points)
    • Electronic degree (points)
    • Maturity of industrial electronics (points)
  • Abundance of digitalization contents
    • Popularization of governmental websites (1–7 points)
    • Evaluation of e-government (1–7 points)
    • Evaluation of e-government websites (points)
  • e-learning popularization (household/school/other)
    • Household on-line popularization (%)
    • Schools' on-line rate (%)

• Social Infrastructure
  • Measures for encouraging foreign investment and financial environment and capital markets
    • Statute for upgrading industries and relevant tax deduction laws and regulations
    • High-tech business tax exemption plan or tax preference policy
    • Tax exemption of venture capital investment
    • Taxation burden rate of foreign enterprises
    • Amount of international capital transfer and time of outward remittance
    • Credit rating of banks
    • Volatility of exchange rate
    • Bank management transparency (systematization and standardization)
    • Enterprise directors and supervisors management transparency (systematization and standardization)
    • Liability to accquire huge amount of capital for foreign enterprises
    • Ratio for the amount of absorbing foreign capital to total investment
    • Tariff
    • Personal income tax
    • Condition of business credit and business ethics for enterprises in investing regions
    • Whether foreign banks are able to engage in local currency business
  • Degree of social internationalization and liberalization
    • Ratio of outbound visitors to regional population (%)
    • Ratio of inbound visitors to regional population (%)
    • Ratio of legal foreign residents to regional population (%)
    • Number of international conferences/exhibitions and their participants
    • Number of foreign financial institutions
    • Ratio of study-abroad students (with student visas) to graduate (and above) students (%)
    • Ratio of foreign students to total regional students (%)
    • Foreign labor ratio (%)
    • Exit and entry policy
    • Traffic cost of exit and entry
    • Foreign language (English) popularization (GEPT — General English Placement Test)
    • Acceptance level of local to foreigner
    • Satisfaction to international schools
    • Fees of studying in international schools
  • Habitations, medical care, and social security
    • Number of western medical doctors per 10,000 inhabitants
    • Number of hospital beds per 10,000 inhabitants
    • Completion rate of regular epidemic inoculation
    • Ratio of medical care expenditure to GDP
    • Crime occurrence rate per 100,000 inhabitants
    • Larceny occurrence rate per 100,000 inhabitants
    • Annual fire accident occurrence number increase rate
    • Traffic accident rate on roads per 10,000 vehicles
  • Governmental performance transparency and administrative efficiency
    • Performance transparency (0–10 points)
    • Government administrative efficiency
    • Complexity of administrative program
    • FDI transparency of verification
    • Communication mechanism between government and foreign companies
  • Integrity and execution level of intellectual property rights and relevant scientific legal systems
    • Level of patents and intellectual property rights protection
    • Level of intellectual property rights trade and circulation
  • Social trust and mutual respect level
    • Equity
    • Unitization
    • Privacy protection
    • Culture diversification and compatibility
    • Harmonious labor-capital relations
  • Positiveness of innovative teaching and education
    • Number of prizewinners that participated in international scientific contests and its ratio to the total student population
    • Creative teaching budget and its ratio to the total government expenditure
  • Convenience and quality of communications and transportation facilities
    • Quantity of international routes (passenger and cargo)
    • Frequency of international flights per week
    • On-time rate of international flights
    • Aircraft movement in airports
    • Accident rate of aircrafts
    • Rate of increase of highway mileage
    • Port/dock cargo loading volume
    • Rapid transit system (subway and light-rail train)
  • Convenience and quality of communication facilities
    • Quantity of telephone switchboards
    • Number of cellular phones per 1,000 inhabitants
    • Number of local phone sets per 1,000 inhabitants
    • Cellular/communication price rate per minute
    • International call price rate per minute
    • Monthly broadband (cable) network communication fee (512k/64k)
    • Network stability
  • Public environment and facilities and environmental protection
    • Popularization of power consumption
    • Average electricity price
    • Peak load and percent reserve margin
    • Electrical power equipment operating efficiency: including the capacity utilization rate, the net heating efficiency of boiler combustion air mechanism, the line loss rate, the automatic emergency stop frequency of nuclear mechanism
    • Power supply quality: including the power recovery time per household, the power recovery time from accidents, and the power recovery time from construction
    • Tap water popularization
    • Average monthly water bill per person
    • Annual water supply volume for cities
    • Popularization of household sewer connections
    • Rainwater drainage construction rate
    • Popularization of cable TV
    • Recycling rate
    • Garbage disposal rate
    • Annual frequency and loss from natural disasters (including typhoons, earthquakes, and floods)
    • Quantity and quality of city environment

The following sections are include:

• Appendix A

• Appendix B

• References

• Index