Breaking the China-Taiwan Impasse

By Donald S. Zagoria; Chris Fugarino | Go to book overview

CHAPTER 11

Outlook for Economic Relations between the Chinese Mainland and Taiwan After Joining the World Trade Organization

Yu Xintian


DEEPENING OF CROSS-STRAIT ECONOMIC INTERDEPENDENCE

In the past 10 years, Taiwan business people have entered the mainland on a large scale and cross-strait economic interdependence has increasingly been enhanced. According to the mainland's official data, by 2000 Taiwan-invested enterprises on the mainland had reached 47,000, with contractual investment of U.S. $48.66 billion and actual investment of U.S. $26.38 billion. But according to the estimate of Taiwan's central bank, Taiwan's investment in the mainland had hit U.S. $70 billion. Economic circles have even estimated the investment at U.S. $100 billion. Driven by a large amount of investment, the total trade volume between the two sides of the strait in 2000 created a record high. According to the mainland's official statistics, the trade volume reached U.S. $30.53 billion, up 30.1 percent over the previous year, whereas according to Taiwan's statistics, it hit U.S. $32.38 billion. The cross-strait accumulated total trade volume had amounted to U.S. $190.93 billion, of which the mainland's export to Taiwan was U.S. $31.04 billion. Taiwan had become the fifth-largest trade partner and the second-largest import market of the main-

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