Cross-strait investments test ruling party's mettle

Us model

There is also a full understanding among US companies that they are on their own should they fail in their operations abroad. Only if clear discrimination against US firms is practiced by a foreign country does their government intervene.

The government's "effective management" mechanism should do just that.

"Don't be afraid of opening up. Even President Chen Shui-bian (陳水扁) has said that Taiwan would be safer through internationalization," Lee said.

"I don't think the government can stop local chipmakers from relocating to China if they really want to. Why not allow local investment in China and effectively manage it? Doesn't it sound appropriate and necessary?"