The Logic of Government-Business Relations in the High-Quality Development of Kunshan’s Taiwan-Invested Economy

Objective/Meaning The high-quality development of Kunshan’s Taiwan-invested economy is an important component of the “Kunshan Path”. Decoding the logic of government-business relations behind it can provide a useful reference for other regions seeking to develop Taiwan-invested economies and improve government-business interaction.

Methods/ Procedures Using field investigation methods and drawing on the “embedded development” analytical framework, this study deconstructs Kunshan’s Taiwan-invested economic development as an embedding process involving “government embedding in the market, Taiwanese enterprises embedding in the locality, and local development embedding in the national strategy”, and reviews its development stages and successful experience.

Results/Conclusions The findings show that the three-dimensional empowerment of a proactive government, an efficient market, and a compassionate society—together with considerate services, platform building, policy guidance, the shift from fragmentation to agglomeration and from low-end to high-end, industrial chain integration, and the building of a spiritual homeland, vertical coordination, and a regional community—constitutes the path dependence and iterative source of Kunshan’s high-quality development of its Taiwan-invested economy, and is a concrete manifestation of the logic of government-business relations. Together, these factors shape a government-business community with clear boundaries and mutual empowerment.