From the US-Taiwan Economic Relationship to Sustainable Global Economic Development

Sowang Kuo Tony (2022) From the US-Taiwan Economic Relationship to Sustainable Global Economic Development. In: Changing Trade and Investment Relations of the Taiwanese Economy. Budapesti Gazdasági Egyetem, Budapest, Magyarország, pp. 93-120. ISBN 978-615-6342-39-3

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Official URL: https://doi.org/10.29180/9786156342393_4

Abstract

Taiwan performed an economic miracle from the 1960s to the 1990s, which made it into one of the Four Asian Tigers, along with Hong Kong, Singapore, and South Korea. Taiwan specifically transformed itself from an agricultural society into an industrial society and became a leading manufacturer of high technology goods, especially electronics, information communications technology, semiconductors, petrochemicals, textiles, etc. Taiwan’s manufacturing sector comprises more than 36 percent of the country’s gross domestic product (GDP) and provides jobs to 35 percent of the workforce. The country is one of the largest suppliers of semiconductors, computers, mobile phones, and monitors to the world market. The nominal GDP ranks twentieth in the world and is the seventh largest economy in Asia. While the country is known for its semiconductor and electronics industries, Taiwan’s economy is still dominated by the services industry. The services sector accounted for 62.7 percent of Taiwan’s GDP in 2020, employing 59.7 percent of the labor force. Taiwan’s economy is highly export-oriented and reliant on international trade. Although its economic performance seems to make Taiwan a major global economic actor, the future development of its economy is dependent on its foreign relations, especially the relationship with major economic powers, like the United States and China. China continuously attempts to isolate Taiwan diplomatically and its ability to maintain its presence in global markets, restrain Taiwan’s economic stability and the wills of other countries to maintain a stable economic relationship with Taiwan.