12426. TAIWAN AND CHINA: THE INVESTMENT CONTROVERSY. Taiwan's policy on Taiwanese business investment in mainland China, with particular attention to electronics sector investments. An introductory section provides an overview of current investment and summarizes Taiwanese government policy. Looks at the driving factors behind electronics firms' rush to China and possible outcomes in terms of the expected near-term economic and political conditions. The effects of such investments on both the electronics industry and the larger social/economic welfare of Taiwan are assessed. Concludes with policy recommendations. 20p., 127f., 58b.