Studies On Zhejiang Private Enterprise’s Capital Investment In Taiwan’s Tea Industry

Private economy is the essential part of Zhejiang economy. The development of private economy is the important factor that Zhejiang province can turn from a resource lacing province into a province with powerful economy. As the accumulation of private enterprise’s capital, it desires to go out to do international business. Through going out, private enterprise wants to solve the issues between economic development and lacking of resources. And in this way, Zhejiang province can realize the transformation and upgrading of economic structure. It can achieve the target that private enterprise capital can get a good rewarding at the end.On the background that mainland China and Taiwan communicate and cooperate with each other more closely and private enterprise in Zhejiang province facing transformation and upgrading of economic structure, this paper first introduced the history of the development of Zhejiang private enterprise capital and analyzed difficulties it faced as going to new centuries. Then using the FDI theory to analyze the situation Zhejiang private enterprise capital facing now, this paper got the conclusion that it’s better to put the capital to invest in Taiwan tea industry’s development if problems existing should be solved. After analyzing the factor endowment of Zhejiang province and the advantage&disadvantage of Taiwan tea industry, this paper discussed and suggested how Zhejiang private enterprise capital should invest in Taiwan tea industry at last. At the same time, the paper gave suggestions how tea products of Taiwan tea industry which is invested by Zhejiang private enterprise capital should do its marketing in both mainland China and Taiwan market to insure that private enterprise capital gets a good rewarding.The innovation of this paper may be that though studying Zhejiang private enterprise’s capital investment in Taiwan’s tea industry, it might be a way to solve problems private enterprise’s capital facing now and to realize transformation and upgrading of economic structure in this perspective.