One question that I am asked frequently is about the relationship between mainland China and Taiwan. This is a hot topic for investors in Asia because the history between the two nations over the years has been far from friendly.

The animosity between China and Taiwan dates all the way back to 1949. At that time, Chinese Nationalist troops suffered defeat at the hands of the Communists and retreated to the island of Taiwan. This created hostility and antagonism between the two sides and shut doors to trade and travel.

It was more than 30 years later before China re-opened its doors to travelers and immigrants from around the world when Deng Xiaoping came into power in the 1980s. Since then, more than one million of Taiwan's most affluent, resourceful and ambitious citizens have picked up their families and moved to the Mainland — a move that brought $200 billion to the Chinese economy.

While Taiwanese investment flooded cash into the Mainland and added to the China Miracle, the island's economy suffered from this loss of funding. Taiwan has experienced an economic slowdown since 2004, and as a result, it didn't participate when other Asian stock markets rose substantially in 2006 and 2007.

Politics Opens Doors to Profits

Despite Taiwan's struggles over the years, this island nation is on the verge of a turnaround. Last May, Taiwan elected a Pro-China president, Nationalist Party candidate and former mayor of Tai Pei, Ma Ying-jeoh. And from day one, Ma has taken a pragmatic approach to Taiwan's relationship with China. He understands China's rising position on the global scene, and that a strong relationship with the Mainland can stimulate Taiwan's economic growth, making it easier for capital and people to move between China and Taiwan.

While Ma was sworn into office just as the global financial crisis was heating up, he hasn't let the world's woes deter his efforts to strengthen ties with China and boost Taiwan's economy. In the year since he was sworn into office…