Businessmen say they interpret this to mean keeping their corporate headquarters, research facilities and product development at home. But the government doesn't rely just on persuasion. The companies, in turn, do all they can within the limits and creatively exploit grey areas. Taipei's requirement that companies channel their mainland investments through third countries has contributed to some fogginess about the size of the flow. Still, the trend is clear.
Security analysts estimate that at least an equal number are preparing to invest there.
Lee cites the example of notebook computers, which Taipei prohibits companies from assembling on the mainland. Although Acer puts its notebooks together in Taiwan, it has a Shanghai subcontractor handle some internal assembly. It's labour-intensive work that must meet high technical standards. Since computer-making relies on a complex network of supporting companies, a ripple effect is taking place. Delta Electronics says at least 30 smaller companies followed it to Guangdong in the mid-1990s.