The “going south” policy was officially announced in 1993 in an effort by the KMT government
to divert Taiwanese investments from China to Southeast Asia. The later “patience over haste”
policy of 1996 was advocated by then-President Lee Teng-hui to slow down the capital flow from
Taiwan to China and capped Taiwanese investment on the mainland to, at one point, 40% of a
company’s total assets. For detailed overviews, see Lijun Sheng, China and Taiwan: Cross-strait Relations under Chen Sui-bian (New York: Zed Books, 2002); Richard C. Bush, Untying the Knot: Making Peace in the Taiwan Strait (Washington, D.C.: Brookings Institution, 2005); Murray Scott Tanner, Chinese Economic Coercion against Taiwan: A Tricky Weapon to Use (Santa Monica: RAND, 2007).