Heavy investment in China by Taiwanese businesspeople will have many negative  effects on Taiwan in the long run. I will limit my discussion to just  two.
First, large amounts of investment in China by Taiwanese means that  less money is invested in Taiwan, and this slows down the rate of domestic  industrial upgrade. Since the majority of Taiwanese businesspeople can use their  existing technologies to manufacture products in China, they have no need to  conduct research and development or to invest in Taiwan, nor do they face any  immediate pressure to improve the quality of their business operations, which  means industrial upgrades here have slowed and will continue to do  so.




