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Both China and Taiwan have pursued aggressive investments in the computer industry over the last five years. Using Michael Porter's Determinants of National Competitive Advantage, the potential of both countries can be analyzed not only separately, but also in terms of the combined resources based on the possibility that Taiwan and China join forces in pursuing a stronger position in the global computer industry. The critical factor in determining the synergies will be the policies of the governments of China and Taiwan. [ABSTRACT FROM AUTHOR]