China also objects vehemently to a proposed U.S. sale of four destroyers equipped with the Aegis missile system to Taiwan. That could put a kink in key Taiwanese business links. Manufacturers continue to pour investment into the mainland, looking for cheap labor and factories.
Analysts say that's vital to their competitiveness.
Otherwise it could easily cause problems for political reasons and disrupt the economic process. First Taiwanese textile, chemical and machinery companies moved production offshore to cut costs. Now an increasing number of semiconductor makers and other technology companies are following suit. Most of the investment goes into Fujian province, directly across the Taiwan Strait, and to nearby Guangzhou province. Taiwanese commitments in the mainland rose 120 percent in 2000.