The unstoppable tide: rapid rise in Taiwan-China trade pressures Taipei

Article Abstract:

Taiwanese businessmen whose companies are doing ever more business in mainland China are urging the Taiwan Government to stop prohibiting direct trade and investment in China. The government has opposed an abrupt end to the ban out of fear that closer economic ties with China would weaken Taiwan's position in negotiations over unification. However, with 12,000 Taiwanese firms now engaged in ventures in China, and with more certain to follow, an end to the ban on direct trade is now seen as inevitable. The government wants to avoid becoming overreliant on Chinese trade. .

Political aspects

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Not in harmony: trade with China grows, but political dialogue is frozen

Article Abstract:

Industrial and economic links between China and Taiwan have moved ahead dramatically since China ended its 1995-6 intimidation campaign, but on the political front little has changed. Formosa Plastics chairman Wang Yung-chin signed a $3.2 billion deal to build a thermal-power plant in China, met with two Chinese vice-premiers, and promptly announced it would become a $6 billion investment. Despite claims from both sides that they are interested, however, there remains no sign of progress toward new political talks.

International economic relations

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