#P’eng-hu

[findsunbiz]

Taiwan, Chinese (Wade-Giles romanization) T’ai-wan or (Pinyin) Taiwan, Portuguese Formosa, island in the western Pacific Ocean that lies roughly 100 miles (160 km) off the coast of southeastern China. It is approximately 245 miles (395 km) long (north-south) and 90 miles (145 km) across at its widest point. Taipei, in the north, is the seat of government of the Republic of China (ROC; Nationalist China). In addition to the main island, the ROC government has jurisdiction over 22 islands in the Taiwan group and 64 islands to the west in the P’eng-hu (Pescadores) archipelago. Two island groups controlled by the ROC government, Matsu and Quemoy, lie just off the coast of China’s Fujian (Fukien) province. In the East China Sea, the ROC claims the group of islands it calls Diaoyutai, which also are claimed by Japan as Senkaku and by the People’s Republic of China as Diaoyu. Moreover, in the South China Sea, the ROC’s claim to the Paracels is disputed with the People’s Republic of China and Vietnam, whereas a larger group of countries—the People’s Republic of China, Vietnam, Malaysia, and the Philippines, in addition to the ROC—all claim the Spratly Islands.

In the late 1940s and early 1950s, many economists regarded Taiwan’s economic situation with considerable pessimism. That assessment was based on Taiwan’s unfavourable land-to-population ratio, its lack of natural resources, a shortage of capital, and a discredited government. However, that perception did not turn out to be true. Taiwan’s economic growth beginning in the mid-1960s was so spectacular that it acquired the appellation “economic miracle.” In the 1990s Taiwan’s economy slowed, but its growth remained good, even during the East Asian financial crisis of 1997. In 2001 Taiwan experienced a recession, mainly caused by political paralysis. Its economy again underwent a downturn, beginning in 2008 with the global recession, from which it recovered only slowly.

Taiwan’s economic boom of the 1960s and for several decades after was preceded by land reform, which generated a marked growth in the agriculture sector. Rural prosperity stimulated industrial development, while more-efficient farming released labour for Taiwan’s industrialization that drove the economy in the 1960s and ’70s. In the 1980s Taiwan moved to capital-intensive and knowledge-based industries. A high rate of savings, rising labour productivity, privatization, astute government planning, considerable foreign investment, and trade all propelled Taiwan’s rapid economic expansion.

Taiwan’s initial industrialization was spurred by the growth of textile factories and companies that produced light manufactures, such as small appliances, footwear, and athletic equipment. Companies subsequently moved to manufacturing semiconductors and electronic equipment, including radios, television sets, and computers. By the mid-1980s Taiwan had become one of the world’s largest producers of computers and computer peripherals. It also succeeded in establishing steel and shipbuilding industries, but those were of less significance than the enterprises manufacturing information- and communication-technology (ICT) products. One reason given for that circumstance is that Taiwan’s economy is based primarily on small- and medium-sized companies rather than on large conglomerates—as has been the case in Japan and South Korea.

Early on, Taiwan adopted a policy of import substitution, imposing high tariffs to protect its budding industries. However, it soon abandoned that strategy in favour of strongly promoting exports—to the degree that it soon was trading more than Japan and had become a model for development that refuted the dependency theory model that had been applied to developing countries in other parts of the world (e.g., Latin America). Of note in Taiwan were the creation of export-processing zones, in which foreign companies were allowed to establish factories that were given significant tax breaks and other advantages but that also trained local labour and generated spin-off enterprises that were also part of the “Taiwan model.” Other components of that model included low taxes, a good infrastructure, a stable society, and a good educational system.

Taiwan was an important trading entity at times during its history, which even included serving as a commercial centre in East Asia. For extensive periods of time pirates operating out of Taiwan carried on illicit foreign trade. During the time when China ruled Taiwan there was considerable commerce between the island and the mainland. Taiwan’s trade was mainly with Japan, however, during the Japanese colonial period.

After the brief period of protecting domestic industries through its import-substitution policy, the government shifted to strongly promoting exports, a strategy that was highly successfully. One of the keys to that policy was producing higher-value goods and then improving their quality. Another key was Taiwan’s small companies’ ability to find foreign partners.

Taiwan’s main exports are electronics, basic metals and metal products, plastics and rubber, chemicals, and machinery. Its principal export trading partners include China (including Hong Kong), countries of the Association of Southeast Asian Nations (ASEAN), the United States, Japan, and South Korea. Taiwan’s major import commodities include electrical machinery and appliances, mineral fuels and mineral products, and chemicals. Its chief import sources are China, Japan, ASEAN countries, the United States, the countries of the European Union, and South Korea.

The service sector of Taiwan’s economy is now its most dynamic and fastest growing, accounting for some two-thirds of the annual gross domestic product (GDP). The main components of services (in descending importance in terms of GDP) include wholesale and retail trade, government services, finance and insurance, real estate (including renting and leasing), transport (including storage), health care and social services, professional and high-tech services, accommodations (including food), education, and culture (including sports and recreation).

Finally, I will leave a link which includes all companies and enterprises in Taiwan, for those who want to research and discover more about this country. Thanks for reading.

All businesses address in Taiwan: https://findsun.net/TW

#business #taiwan