Paper Summary:

The following paper will argue that the Greater China trading region is a major part of a broad, overarching effort on the part of mainland China to improve its inflow of foreign direct investment - and it seems to be working. To wit, the economic bloc of Mainland China, Taiwan and Hong Kong is on the verge of becoming a dominant, maybe the dominant, trade region in the world - although many problems still remain which might confound its growth and its ability to attract foreign direct investment. To elaborate, there can be no question that the Greater China trading region is a dynamic concept (and, obviously, an undeniable physical reality) that has sparked an increase of FDI into the country; there is similarly no disputing the fact that the complementarities of endowments and a common culture have resulted in a general spirit of informal cooperation and in a tightly-bound trade zone that is fast becoming the envy of the world. I will explore these items and stress how China's ultimate goal of world economic predominance will be realized just as long as it continues to exploit the special strengths of each region - Taiwan, Hong Kong and the mainland - and moves to rid itself of the uncertain legal system that gives foreign investors reason for concern; it would also help if it smoothed its relationship with other nations. In the end, by opening its doors to FDI, China has positioned itself to replace the US as the "factory" of the world; now, all it needs to do is to work on the shortcomings mentioned above.

From the Paper:

The Significance of the Greater China Trading Region and Its Relationship to Mainland China's FDI Reform The following paper will argue that the Greater China trading region is a major part of a broad, overarching effort on the part of mainland China to improve its inflow of foreign direct investment - and it seems to be working. To wit, the economic bloc of Mainland China, Taiwan and Hong Kong is on the verge of becoming a dominant, maybe the dominant, trade region in the world - although many problems still remain which might confound its growth and its ability to attract foreign direct investment. To elaborate, there can be no question that the Greater China trading region

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