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 until the mid-1990s grew at an average annual rate of 8 per cent (much higher than most industrialised countries). 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). Massive foreign currency reserves accumulated over the years have since 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. However, the crisis drew attention to structural problems in the economy, especially an urgent need for reform of the tax and banking systems. 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. After a brief recession in 2000/01, the economy is now growing steadily at around 3 per cent annually. Unemployment is manageable at 5 per cent, while inflation is under 1 per cent. Export volumes are once again on the increase, and Taiwan runs a healthy trade surplus.
The performance of the Taiwanese economy is significantly affected by external political and economic conditions, especially in China (PR). Despite the 2004 re-election victory of the Sino-Sceptic President Chen, trade volumes with the mainland - already over US$50 billion annually - have increased sharply. Bilateral trade between Taiwan and the mainland rose from $41.01 billion in 2002 to $58 billion in 2003 and is expected to have passed $70 billion in 2004. Taiwan's other major trading partners are the USA, Japan, Germany, Australia and Saudi Arabia (which supplies the bulk of Taiwan's oil requirements). In January 2002, Taiwan was admitted to the World Trade Organisation.
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 6245; e-mail: taitra@taitra.org.tw; website: www.taiwantrade.com).
Conferences/Conventions
There is a wide range of convention facilities, including the vast Taipei World Trade Center Complex which houses the Exhibition Hall, the Grand Hyatt Taipei, the International Trade Building and the Taipei International Convention Center. 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), 1 Hsin-Yi Road, Section 5, Taipei 110 (tel: (2) 2725 5200; fax: (2) 2723 2590; e-mail: ticc@taitra.org.tw; website: www.ticc.com.tw).
|
