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

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

4. 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 688.0 US$ 346.7 billion 100.0 GDP (purchasing power parity) Index with Taiwan GDP = 100 US$ 10,210 billion 1,410.0 US$ 681.8 billion 100.0

5. GDP comparison (2006) with Taiwan GDP = 100

6. 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 1978210,64926,83612.7 1980303,05642,28513.7 1985307,02263,40920.7 1990390,278164,51342.2 1995727,981273,79237.6 20001,198,476321,23026.8 20011,324,818291,69422.0 20021,453,820297,66820.5 20031,640,967305,62418.6 20041,931,644331,00717.1 20052,244,563354,91815.8 20062,645,212364,42213.8

7. Changing relative levels of GDP (1978-2006)

8. 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$ 7,800 26.4 US$ 29,600 100.0

9. Per capita GDP (PPP), 2006

10. Quantitative indicators of Taiwan’s merchandise trade All figures in US$ million ExportsImportsTotalBalance 1952117187304-70 1960164297461-133 19654505561,006-106 19701,4811,5243,005-43 19755,3095,95211,261-643 198019,81119,73339,54478 198530,72620,10250,82810,624 199067,21454,716121,93012,498 1995113,342104,012217,3549,330 1999123,733111,196234,92912,537 2000151,950140,732292,68211,218 2001126,314107,971234,28518,344 2002135,317113,245248,56222,072 2003150,600128,010278,61122,590 2004182,370168,758351128013,613 2005198,432182,614381,04615,817 2006224,017202,698426,71521,319

11. Taiwan’s merchandise trade

12. Taiwan’s outward investment (1952-2006, selected years) Total outward investment (US$ million) Shares to (%): North AmericaAsiaEurope 1952-7959.322.982.60.2 198042.183.47.50.2 198541.386.710.22.2 19901,552.254.038.86.2 19951,356.958.034.54.4 20005,077.177.716.71.2 20014,391.778.818.61.0 20023,370.073.515.73.7 20033,968.668.826.82.0 20043,382.055.637.71.8 20052,447.466.117.64.1 20064,315.454.132.22.9 NOTE: Asia here excludes Mainland China

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

14. “We must liberate Taiwan” (1958)

15. “We must liberate Taiwan” (1971)

16. “We must liberate Taiwan” (1977)

17. “Taiwanese compatriots are our brothers” (1976)

18. “Taiwanese compatriots are our blood brothers” (1978)

19. China’s economic potential in comparative perspective China’s per capita GDP as % of each region (country) Implied US dollar gap 1995201519952015 Seven dynamic Asian countries (incl. Taiwan) 42.551.6- 3,603- 6,010 32 advanced capitalist countries 15.828.9- 14,157- 15,801 Eastern Europe51.668.9- 2,492- 2,894 World51.187.4- 2,541- 925 USA11.321.1- 20,724- 23,870 Japan13.525.1- 17,067- 19,135 India169.2205.1+ 1,085+ 3,278 Former Soviet Union73.9108.8- 937+ 516

20. 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 19851.061.400.58 2.34 19882.473.700.96 4.06 19904.236.541.40 8.24 19915.579.790.46 11.75 19927.3112.841.0313.09 19939.1916.281.31 13.46 19949.9316.992.17 13.86 199510.3617.152.9714.71 199610.7917.632.97 14.93 199711.0318.083.41 15.77 199811.0017.623.91 14.15 199911.0017.224.07 12.86 200010.6716.464.4311.11 200113.4520.275.4710.51 200215.8923.307.0410.68 200317.7025.438.619.28 200418.7226.839.95 8.72 200520.0428.3611.00 8.53 200620.6528.2712.23 8.00 Source: Taiwan, Mainland Affairs Council

21. Taiwan and China – changing mutual trade dependence

22. Taiwan’s outward investment Investment destination: 1991-2006 cumulativeJanuary-July 2007 Amount of investment (US$ m.) As % total outward investment Amount of investment (US$ m.) As % total outward investment China54,898.554.54,831.171.1 British Central America18,449.918.3582.48.6 United States7,629.57.6183.62.7 Hong Kong2,483.42.5100.11.5 Singapore3,477.43.5303.34.5 Vietnam1,353.11.352.60.8 Japan1,102.21.13.70.05 Thailand991.91.026.00.4 Philippines499.00.58.00.1 Others8,678.38.6614.69.2

23. Outward investment from Taiwan

24. 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.

25. Regional distribution in China of Taiwanese FDI 199520002005Cumulative 1991-2005 US$ m.% % % % ALL CHINA1,092.7100.02,607.1100.06,007.0100.047,256.2100.0 Jiangsu (incl. Shanghai) 394.836.11,251.648.03,366.656.121,218.044.9 Guangdong222.820.41,019.739.11,220.220.3113,135.627.8 Fujian56.032.1121.711.1398.36.63,882.98.2 Zhejiang0.190.157.435.3484.88.13,225.56.8 Hebei7.474.383.197.6196.03.32,023.24.3 Shandong2.061.224.042.2109.01.8830.41.8 Sichuan0.170.16.500.643.80.7535.01.1 Hubei0.800.524.442.239.40.7471.31.0 Hunan0.140.131.562.912.00.2180.10.4 Liaoning0.310.236.613.418.60.3390.20.8 Other9.335.489.768.2118.22.01,363.82.9

26. Distribution of Taiwanese investment in China, 1991-2005

27. Distribution of Taiwanese investment in China, 2005

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