Since the 1990s, direct investment by Taiwan businessmen in Mainland China has developed very quickly and has become an important element in overall investment in Mainland China. In recent years, industrial restructuring and the change of policy promoting investments has led to significant differences in the overall business environment in Mainland China. At the same time, Taiwan launched the "Salmon Back" plan to attract Tai wan businessmen to invest in Taiwan; additionally, Vietnam introduced a series of favorable policies to encourage their competitive advantage. Consequently, investments by Taiwan businessmen in Mainland China were re duced. This paper analyzes the reason for withdrawal of the investments by Taiwan businessmen as well as the possible impacts, and puts forwards some corresponding suggestions.
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