The Effects of China’s “Belt and Road Initiative” and “31 Measures to Benefit Taiwan” on the Development of Taiwanese Enterprises
- Hsiung-Shen Jung
- Jui-Lung Chen
Abstract
China has achieved rapid economic growth and become involved in the economic globalization through its policy of reform and opening-up and modernization. It has attracted much investment from lots of Taiwanese enterprises, including some small and medium-sized enterprises featuring a high labor cost and facing difficult operation in the traditional industries. Thanks to the policy, many Taiwanese enterprises have got a chance to rebirth by transforming their crises into opportunities. With the implementation of the policy of urbanization, the people from rural areas in China have been moving to urban areas, and the enterprises of the second and third industries have been concentrating in cities. This has not only fueled the livelihood-oriented consumption in China but also expanded the domestic demand market of the Taiwanese medium and large-sized livelihood enterprises in China. The Belt and Road trade foundation construction program, which aims to link Europe, Asia and Africa and was proposed in 2013, is an extension of the Great Development of Western Part of China and offers Taiwanese enterprises a chance to get fully involved in the development of the international market. The 31 Measures to Benefit Taiwan announced by the Chinese government in February 2018 has significant influence on the future development of the Taiwanese enterprises in China. Therefore, this paper will elaborate on the effects of the Belt and Road and the 31 Measures to Benefit Taiwan on the Taiwanese enterprises.
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- DOI:10.5539/ibr.v11n12p53
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