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Latest Views and News About Business Opportunities in Asia:
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ECONOMIC TRENDS IN PACIFIC RIM COUNTRIES
Latest Asian corruption in government list by PERC (POLITICAL AND ECONOMIC RISK CONSULTANTS) : Singapore is the cleanest, followed by Japan, Hongkong, Malaysia, Republic of Korea, Taiwan......
Where does Taiwanese investment go to? In 2001, 74.7% moved into mainland of China, followed by USA, Hongkong, and Malaysia. Even more investments are expected to go to PRC according to survey.
FREE TRADE AREA TREND (Part II)
Is Taiwan going to be the FTA orphan?
April 5, 2002
Since the relocation of the ROC government to Taiwan, its international position has been dwindling to almost nothing while its economic strength has earned the fame of a small dragon. Because of the "diplomatic sterilization of Taiwan" policy by the Communist China, poor Taiwan has become almost an international UNTOUCHABLE.
Despite Taiwan's economic growth, PRC has done even better after Teng, "The Shortie", embraced capitalism in 1978. That is a Taiwan's nightmare.
The advent of regional economic cooperation has not given Taiwan a seat, even at the second table. According to WTO's statistics, there are already about 240 FTAs all over the world. The interesting point is that neither Taiwan nor the PRC has entered into any FTA arrangements with other countries. For Taiwan, it is thr cool reality of international politics - no country wants to enter such an agreement with Taiwan because such an act could be hazardous to whatever ambitions the same country may have concerning Beijing. The PRC, on the other hand, is purposely slow in motion - because many world economic powers, big or small, are seeking a slice of their market. That is what people say : you do not have to go the moon; the moon is coming to you!
The biggest regional economic bloc, ASEAN, has no interest in including Taiwan or concluding any pacts with Taiwan for a FTA, not while PRC is negotiating FTA's or other economic cooperations with the region. South Asian countries such as Bhutan, Bangladesh, India, Maldives, Nepal, Pakistan, and Sri Lanka are going to have an FTA arrangement with the PRC. However, even though their population size is 1/5 of the world's, their total foreign trade volume is far less proportionate. Even trade among them is only 4% of their international trade, showing a not very bright prospect for the near future.
Taiwan understands its fragile position and has been trying to break the ice by approaching the USA and Singapore, 2 of the most hopeful prospects for Taiwan to achieve a FTA agreement. So far, nothing looks to happen. There is even talk in Taiwan of having an FTA with Japan, because Japan is the biggest exporter to Taiwan. Nevertheless, the Nippon policy won't risk the displeasure of the bigger fellow on the Asian continent by concluding a conspicuous economic partnership with Taiwan.
As the circumstance goes, Taiwan has been MARGINALIZED, if not already an orphan of FTA.
E-mail: VJCHANG@hotmail.com
Tel/Fax: (60-3) 4252 4214
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