A Study On The Direct Investment In Agriculture Of Mainland China From Taiwan

After 1949, both sides cross the strait (Taiwan and Mainland China) have their own agricultural policies respectively. And from then on, the two areas have different development paths. Both sides cross the straits have many strong complementarities of agricultural resources. As early as 1980s, some Taiwan merchants have begun investing in agriculture of Mainland China. However, under some man-made obstacles from Taiwan, the scale of agricultural investment has never been as large as it was supposed to be.With the prosperous development of Taiwan agriculture and the impact of entry into WTO, the development of Taiwanese agriculture has slowed down and numerous agricultural recourses is in the idle state and can't be fully utilized, so some merchants are urgently seeking other new development opportunities. During this period of time, Compared to other countries, Mainland China has abundant land & labour resources, lower production costs, the increasing improved investment environment and enjoys unique and favourable geographical advantages. Just for it, Mainland China has become one of the ideal places for the outflows of Taiwan's agricultural capital.The agriculture of Mainland China was born with weakness, which has being in a critical transition period from traditional agriculture to modernized agriculture. To improve the international competitiveness and anti-risk ability of agriculture, foreign capital which contains modernized production elements is urgently needed. The agriculture industry in Taiwan has been high capitaled which has the advantages of advanced production technology, professional management and marketing experience. And it is of great reference influence to the development of the agriculture of Mainland China.In recent years, the business relationship across the strait has become tighter and tighter, forums on agricultural cooperation have been held frequently, leaders of the political parties on both sides have visited each other many times, and all these create a harmonious atmosphere for the agricultural investment in mainland by the Taiwan merchants.So, a systematic summary and reconsideration on Taiwan agricultural investment in Mainland China will provide profound reference for sustainable development and cooperation in agriculture cross the straits, as well as the adjustments in policies for Mainland agriculture to attract Taiwan investment.This research systemically analyses the structure evolutions of Taiwan agriculture, motivations of its overseas investments, especially in Mainland agriculture, and present state of Taiwan's investment in Mainland agriculture (focused on investment amount, investment scale, investment methods, industrial structure and geographical allocation). Plus, using related international investment theory, we explain the influence factors of Taiwan investment in Mainland agriculture and analyze the economic effectiveness of Taiwan investment in Mainland China agriculture. Last but not least, the article gave some suggestions on policies on how to further develop Taiwan investment in Mainland agriculture.