TAIWAN’S INTERNATIONAL ECONOMIC RELATIONS ECONOMIC INTEGRATION ACROSS THE TAIWAN STRAIT

“We must certainly complete the great task of unifying the mother country” (1978)

A comparison of two Chinese economies - China and Taiwan in 2006 ChinaTaiwan GDP (official exchange rate) Index with Taiwan GDP = 100 US$ 2,527 billion US$ billion GDP (purchasing power parity) Index with Taiwan GDP = 100 US$ 10,210 billion 1,410.0 US$ billion 100.0

GDP comparison (2006) with Taiwan GDP = 100

GDP in China and Taiwan (at current prices) China GDP (US$ m., current prices) Taiwan GDP (US$ m., current prices) Taiwan GDP as % China GDP ,64926, ,05642, ,02263, ,278164, ,981273, ,198,476321, ,324,818291, ,453,820297, ,640,967305, ,931,644331, ,244,563354, ,645,212364,

Changing relative levels of GDP ( )

A comparison of per capita GDP in China and Taiwan (2006) ChinaTaiwan Average per capita GDP (PPP terms) With Taiwan per capita GDP = 100 US$ 7, US$ 29,

Per capita GDP (PPP), 2006

Quantitative indicators of Taiwan’s merchandise trade All figures in US$ million ExportsImportsTotalBalance , ,4811,5243, ,3095,95211, ,81119,73339, ,72620,10250,82810, ,21454,716121,93012, ,342104,012217,3549, ,733111,196234,92912, ,950140,732292,68211, ,314107,971234,28518, ,317113,245248,56222, ,600128,010278,61122, ,370168, , ,432182,614381,04615, ,017202,698426,71521,319

Taiwan’s merchandise trade

Taiwan’s outward investment ( , selected years) Total outward investment (US$ million) Shares to (%): North AmericaAsiaEurope , , , , , , , , , NOTE: Asia here excludes Mainland China

“Resolutely liberate Taiwan. Save the Taiwanese people from their misery” (1955)

“We must liberate Taiwan” (1958)

“We must liberate Taiwan” (1971)

“We must liberate Taiwan” (1977)

“Taiwanese compatriots are our brothers” (1976)

“Taiwanese compatriots are our blood brothers” (1978)

China’s economic potential in comparative perspective China’s per capita GDP as % of each region (country) Implied US dollar gap Seven dynamic Asian countries (incl. Taiwan) ,603- 6, advanced capitalist countries , ,801 Eastern Europe ,492- 2,894 World , USA , ,870 Japan , ,135 India ,085+ 3,278 Former Soviet Union

Changing cross-straits trade dependence All figures shown as % estimates Taiwan’s total trade with China as share of Taiwan’s global trade Taiwan’s exports to China as share of Taiwan’s global exports Taiwan’s imports from China as share of Taiwan’s global imports China’s imports from Taiwan as share of China’s global imports Source: Taiwan, Mainland Affairs Council

Taiwan and China – changing mutual trade dependence

Taiwan’s outward investment Investment destination: cumulativeJanuary-July 2007 Amount of investment (US$ m.) As % total outward investment Amount of investment (US$ m.) As % total outward investment China54, , British Central America18, United States7, Hong Kong2, Singapore3, Vietnam1, Japan1, Thailand Philippines Others8,

Outward investment from Taiwan

PRC estimates of Taiwan’s utilised investment (FDI) in mainland China (2006) Region or country of originValue of FDI (US$ million) GLOBAL63,020.5 ASIA35,084.9 Taiwan2,135.8 Cayman Islands2,095.4 Virgin Islands11,247.6 SUB-TOTAL (Taiwan, Cayman and Virgin Islands) 15,478.8 Samoa1,537.5 United States2,865.1 Hong Kong20,232.9 Japan4,598.1 Source: China Statistical Yearbook, 2007.

Regional distribution in China of Taiwanese FDI Cumulative US$ m.% % % % ALL CHINA1, , , , Jiangsu (incl. Shanghai) , , , Guangdong , , , Fujian , Zhejiang , Hebei , Shandong Sichuan Hubei Hunan Liaoning Other ,

Distribution of Taiwanese investment in China,

Distribution of Taiwanese investment in China, 2005

“The feelings of sisters on both sides of the Taiwan Straits” (1990)