Chinese economic reform began in 1978. Since then, China experienced a rapid growth in economic development and accumulated foreign exchange reserves. It provides a sound foundation for Chinese outbound investment. The “Going out Strategy” was initiated in the 1990s, with the motivations for Chinese enterprises to extend oversea market, to upgrade technologies, and to obtain strategic resources. As a result, the Chinese outward foreign direct investment (OFDI) has grown significantly. In June 2009, ROC changed her policy to relax the restrictions on Chinese investment in Taiwan. A “positive list” system is used in order to specify permitted industries. In addition, for Taiwan’s key high-tech industries, ROC imposed restrictions on the maximum common share that Chinese investors may hold in a Taiwan-based firm, prohibiting them from taking a controlling interest. To sum up, ROC expects that Chinese capital inflows into Taiwan. However, the governing authorities would also like to reduce the risks that Chinese investment may pose to Taiwan. This book aims to discuss a number of issues relating to Chinese OFDI and Chinese investment in Taiwan. The first chapter introduces the background of this research. Chapter 2 studies China’s outward FDI strategies, including the motivations of Chinese OFDI, the OFDI policy implemented by Chinese government, the impacts of Chinese OFDI on other countries, and the challenges that Chinese OFDI is facing. Chapter 3 discusses several issues regarding Chinese investment in Taiwan, including attitudes adopted by Chinese and Taiwanese authorities toward Chinese investment in Taiwan, the current status of Chinese investment in Taiwan and its possible impacts. Chapter 4 compares the strategies of Chinese OFDI and Chinese investment in Taiwan. An empirical analysis is utilized to reveal the incentives for Chinese investment in Asia countries, providing several policy-oriented insights. Chapter 5 consists conclusions and future research ideas. Keywords: Going out Strategy, Outward foreign direct investment, Chinese investment in Taiwan.