The flows of trade and investment across the Taiwan Strait have increased dramatically in recent years, driven in large part by the increasing integration of the information technology (IT) sectors of Taiwan and the People's Republic of China. This report examines the economic and political implications of cross-Strait flows of technology and capital, particularly in the areas of IT hardware and semiconductor fabrication and manufacturing. The authors comprehensively analyze the investment and IT transfer dynamics between Taiwan and China; assess the impact of current developments for cross-Strait relations, the global semiconductor industry, and the advancement of science and technology development in China; and evaluate the implications of their findings for U.S. policymaking, particularly in the area of high-technology export controls.
This research in the public interest was supported by the RAND National Security Research Division, a division of the RAND Corporation.
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