Saturday, January 19, 2008

Didn't think it possible

I was browsing China Daily this morning and found some interesting articles. As part of the "One China" policy*, the mainland government will increase direct trade with Taiwan. This is the smartest idea for reunification--if politics doesn't work, economics certainly will. Due to the pressure put on foreign countries about the One China policy, the mainland refuses to trade with any nation that recognizes that little island off the east coast. This has made China the largest importer of Taiwanese products. Taiwan has also spent billions of dollars on investments in the mainland--although, new restrictions (mostly in Guangdong province) on factory ownership are worrying some investors.

The surprising facts from the article include the trade deficit. China's deficit with Taiwan was more than US$70 billion. Meanwhile, most of the exports to the island were from Hong Kong (possibly indirect trade from the mainland, but the article doesn't specify). How is this small island the only place in the world with a trade surplus to China? Maybe the US needs to learn something from them.

*I back the "One China" policy. I firmly believe that there should be no more than one China in the world.

1 comment:

JA Huber said...

Oy! What would we do with 2 Chinas???