What’s Goin on in Taiwan?

What’s Goin on in Taiwan?


Stimulated by Taiwanese President Ma Ying-jeou, Taiwan and China will soon begin to discuss a partial free trade agreement. Such talks are in opposition of the former president of Taiwan’s anti-China stance in regards to trade and economic cooperation. President Ma Ying-jeou views such discussions as an opportunity for the Taiwanese to remain a competitive player in the fiercely competitive region. The agreement would allow freer trade for goods, services, and capital but would not pertain to agricultural produces as Taiwanese farmers pleaded that their products would not have to compete with the strong output of crops by Chinese farmers. Additionally, banks of both nations would be able to expand operations into each country, flights into both nations would be scheduled more regularly, and cross-criminal investigations would be permitted.

This pact is crucial for the Taiwanese as China is the most dominant nation in the region. It will be extremely beneficial for the citizens of Taiwan to be able to access the Chinese market, increasing national exports for the strong manufacturing nation. The more economically liberal policy of Ma Ying-jeou should prove to stabilize the economy at a trying time.

As oil prices have been cut in half since last year, the Taiwanese people have experience much lower transport costs helping to stimulate a declining economy. For a nation which imports 99% of its energy, this is a critical change as citizens desperately seek a break in daily costs. Consumer prices have dramatically lessened and interest rates have hit rock bottom. In the fourth quarter the Taiwanese economy contracted by 8.36% which forced the country into its’ first recession since 2001 when the tech bubble burst.