Previous studies on the experiences of Taiwanese people in China often discuss whether they would gradually assimilate into the Chinese society and identify themselves as being Chinese instead of being Taiwanese. Since the issue of political identity and the relationship across the Strait have caused disputes among people in Taiwan in the past decade, it is difficult to explore their self-identification in China. Therefore, it is no surprise that little consensus has been reached among researchers on this
issue.

This paper is based on information collected by participant observation and informal interviews on 51 respondents in Dongguan and Shanghai in 2004-2005, continuous contacts by phone and email in 2005-2007, and revisits in 2008. By analyzing the information from various respondents on the residential pattern indicator, it is clear that Taiwanese people assimilate little into Chinese society. Although most respondents seem to be involved with the local community, there is an invisible but substantial gap between themselves and the Chinese. This “being together, but not mixed” interaction caused by the fear of downward mobility is quite unusual, and will be further discussed in another paper.