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Business Profile
Economy: Taiwan was one of the first ‘tiger economies’ of the Pacific basin. After phenomenal growth from the 1950s onwards, Taiwan had by 1980 become one of the top 20 trading nations in the world and has since maintained its expansion largely uninterrupted at a rate averaging eight per cent (much higher than most industrialised countries). Massive foreign currency reserves accumulated over the years helped Taiwan to minimise the effects of turbulence in the world economy. This was amply illustrated by the 1997 Asian financial crisis in which Taiwan suffered the least damage of any major economy in the region despite a sharp initial drop (nearly 40 per cent) in the value of the Taiwan New Dollar.
Taiwan’s success was built on a policy of rapid industrialisation coupled with low overheads and labour costs, which allowed Taiwanese products to compete successfully on world markets. This achievement has been all the more impressive, considering the island’s dearth of raw materials (excepting small quantities of coal and marble).
However, during 2001, a combination of factors, principally a sharp fall in demand for information technology products – of which Taiwan is one of the world’s largest producers – pushed the economy into an unprecedented recession. That year, GDP contracted by almost three per cent while industrial output fell by eight per cent. However, 2002 saw some recovery, with GDP growth of 3.5 per cent expected to continue into 2003. Unemployment is manageable at five per cent, while inflation (less than one per cent) is negligible. Export volumes are once again on the increase.
The overall condition of the world economy will dictate the pace at which the economy recovers (or how long it remains in recession). Taiwan’s principal industries are textiles, shipbuilding, metals, plywood, furniture and petrochemicals. Agriculture and fisheries, though declining in relative terms, are large enough to allow Taiwan considerable self-sufficiency in basic foodstuffs such as rice, sugar cane, maize and sweet potatoes; fishing is of comparatively minor significance. Taiwan’s major trading partners are the USA, Japan, Germany, Australia, Saudi Arabia (which supplies the bulk of Taiwan’s oil requirements) and China, with whom bilateral trade now exceeds US$5 billion. In January 2002, Taiwan was admitted to the World Trade Organization.
Commercial Information: The following organisations can offer advice: Ministry of Economic Affairs (ROC), 15 Fu Chou Street, Taipei 100 (tel: (2) 2321 2200; website: http://isc01.moea.gov.tw); or China External Trade Development Council (CETRA), 333 Keelung Road, Section 1, Taipei 110 (tel: (2) 2725 5200; fax: (2) 2757 6653; e-mail: cetra@cetra.org.tw; website: www.cetra.org.tw).
Conferences/Conventions: There is a wide range of convention facilities, including the vast Taipei World Trade Center Complex which houses the Exhibition Hall, the Taipei International Convention Center, the International Trade Building and the Grand Hyatt Taipei. Hotels offer a comprehensive range of facilities and there are some with seating for 1000 and over. For further information, contact Taiwan Convention Association (TCA), 4F #I Hsin-Yi Road, Section 5, Taipei (tel: (2) 2723 2535; fax: (2) 2723 2590; e-mail: ticc@cetra.org.tw; website: www.ticc.com.tw/English).
Copyright © 2003 Columbus Publishing Ltd.
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