SIGNATURE WORK
CONFERENCE & EXHIBITION 2022

From a relatively unknown name in the 1980s to the fastest growing county-level city in China today, Kunshan has experienced spectacular economic growth over the past 4 decades. It is well-established that the cooperative power dynamic relationships between Taiwanese businesspeople, “Taishang”, and Kunshan have been at the heart of Kunshan’s continuous economic miracle, so as many studies have documented the very important role of Taiwanese businesspeople in propelling Kunshan’s economic growth. Nevertheless, what has not been well studied is why Kunshan has been particularly attractive, as an investment destination, to Taiwanese businesspeople and how has the dynamics of Kunshan-Taishang cooperation changed over the past 10 to 15 years. To solve those “Kunshan puzzles”, the study first looks into the chronology of Taiwan business people in Kunshan. It then analyzes Kunshan’s advantages from the economic, political, and social perspective, and examines how those advantages have changed over time. The study argues that the lower production and operation costs, more pro-business political institutions and policies, and cultural proximity have served as the keys of Kunshan in winning mass Taiwanese investment. Based on empirical findings, the study also finds that there has been a considerable outflow of Taiwanese investment over the past 10-15 years due to policy changes and rising operation costs. The study concludes by suggesting the local government to continue to maintain peaceful relations with Taiwanese-invested enterprises and provide growth-enhancing schemes for declining enterprises in order to reverse the trend.