The handful of Chinese army officers I huddled with in the underground bunker all stared intently at their watches. Three, two, one, then KABOOM! At exactly 12:00 noon, the blast of distant artillery sent a five inch shell screaming over our heads and exploded into the hill above us, shaking the ground under our feet and causing dust to drift down from the concrete ceiling above us. It was 1976, and The People’s Republic of China just let lose its daily symbolic protest against its errant rebellious province, known locally as the Republic of China, and to you and I, as Taiwan. Fast forward 33 years later and the Middle Kingdom is sending salvos of money raining down on that prosperous island. China Mobile (NYSE:CHL), the world’s largest cell phone company, has bought 12% of Far Eastone Telecommunications (4904.Taiwan). Although a small deal, it represented the first ever direct investment from China into Taiwan. The move could trigger a takeover binge by big Chinese companies of their offshore cousins. It was only a few years ago Taiwanese businessmen suffered long prison terms for just visiting, let alone investing in China, which they have done in a major but surreptitious way for 30 years. Readers of this letter are well aware of my aggressive recommendations to buy emerging markets China and Taiwan since the beginning of the year (click here for my April recommendation) . Now you have another reason to buy both. Closer ties between China and Taiwan auger well for the stock markets of the two high growth countries. The iShares MSCI Taiwan fund ETF (NYSEARCA:EWT) at one point were up an impressive 92% from the March lows, so if you see a substantial dip it might be a good idea to double up. I guess Beijing figured out that if you can’t beat them, buy them. The proxy takeover bid is mightier than the sword.