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. That makes Taiwan the third-biggest investor in China, after Hong Kong and the United States. Those are the official figures.
Experts say the actual amount is much higher.
Such permission is rarely granted, and high-end technology is barred from mainland production. Taiwanese executives have become adept at sidestepping the restrictions. Many funnel money into China via offshore companies based in places like Hong Kong, Singapore or Bermuda. It is impossible to tell how strong the Taiwan-China ownership links are, he said. A protracted battle over Taiwanese politics could well disrupt them, if it spills into trade and investment.