Strathclyde Associates: Taking A Look At Taiwans Economy
Strathclyde Associates: Taking A Look at Taiwans Economy -Taiwan is recovering rapidly from last years recession
. Its semi-conductor industry is doing well and there is very little inflationary pressure in the economy. Taiwanese, however, are concerned about their linkages with the mainland China. President Ma Ying-jeou played down fears that a planned free-trade pact with China would leave Taipei over-reliant on China, saying the deal could lead to similar ones with other countries that would help diversify the islands economy.Strathclyde Associates: Taking A Look at Taiwans Economy - The planned agreement, known as the Economic Cooperation Framework Agreement, would pull down many of the remaining barriers to trade and investment between Taiwan and China, which have already expanded economic ties in recent years after decades of hostility. It is estimated that the agreement will raise Taiwans gross domestic product by 1.65% to 1.72%, and create 263,000 jobs for Taiwans population of 23 million people.
Opposition parties in Taiwan believe that the agreement which Taiwan and China hope to sign by June, could be a step toward political unification. The Economic Cooperation Framework Agreement is the jewel in the crown of Mr. Mas efforts to engage China economically and boost Taiwans economy. The agreement will allow the free flow of many goods and services except for Chinese agricultural produce, as a concession to Taiwanese farmers. Taiwan has approached the U.S., Japan and Singapore as well as other Southeast Asian countries about having free-trade pacts, but was blocked by China. Once China has the agreement, its opposition to having the same agreement with other countries will reduce.
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