Taiwan Economic Conditions

By | June 6, 2022

Already under the Japanese occupation the western side of the territory had undergone a profound transformation, in order to extend irrigation works, to favor the cultivation of rice and sugar cane, to enhance hydroelectric production and to improve connections. The nationalist government then embarked on an intense process of agricultural and industrial development, encouraged by US investments and the need to employ the large number of refugees who had found asylum on the island. With the hope of a military reconquest of mainland China fading, the desire to achieve a Western standard of living soon became evident. Hence the social and economic reforms adopted, the development of roads and transport, the modernization of health and educational facilities, the strengthening of research and technology, the development of cities with a high level of organization, the affirmation of export-oriented industries. Taiwan has thus established itself, since the late 1970s, as one of the most significant NICs (Newly Industrializing Countries) of the Pacific area, with a steadily growing gross national product and one of the largest foreign exchange reserves in the world. During the last decade of the 20th century, and even more so in the 21st, tertiary activities, in particular financial ones, had a notable development and, in the context of industrial production, the sector acquired a leading role. computer-electronic.

According to Homosociety, agriculture, which occupied 5.1% of the active population in 2009, is practiced with modern and highly diversified methods; even if its contribution to GDP has become marginal (1.7%), it still provides a non-negligible income, especially in the semi-rural districts of the center and south of the island. The main product is rice, the basis of the local diet, and potatoes, sweet potatoes, corn and soy are also common. The breeding of pigs and poultry is rapidly developing, while that of cattle and buffalo is not very significant. Deep sea fishing has supplanted traditional coastal fishing and allows the country a substantial export of fish products. Forests occupy more than half of the land area, but their products have little commercial value. The only mineral resource present in moderate quantities is coal; there are also modest deposits, in terms of quantity and quality, of gold, silver, sulfur, oil and natural gas.

Despite the scarcity of raw materials, industry (36.8% of the active population and 23.1% of GDP) has developed considerably and has become the cornerstone of the economy. Started by the Japanese and then, with the nationalist government, mainly supported by the USA, Japan, Canada, Germany, France and Australia, has met the growing energy needs by equipping itself with various plants, three of which are nuclear (which cover 23% of the country’s energy needs). The industry is mainly active in the sector of the most advanced technologies (such as electronics, information technology and telecommunications) and enjoys a wide international prestige. Among the industries present, the largest are the chemical, textile, food, steel and metallurgical, shipbuilding and rubber industries, while among the most important industrial districts there is the Xinzhu science-technology park, 80 km SW of Taipei, also known like ‘ Silicon Valley nationalist China ‘for the presence of electronic industries of global importance, and the industrial zone on the outskirts of Taipei (Nankang), inaugurated in 1999 and mainly intended for software creation. The development of industries has created serious environmental problems, with high pollution of the atmosphere, particularly in urban districts, and of inland waters. Projected outwards, industrial production was favored by the competitiveness of prices as well as by the quality of the articles, thanks to the low labor costs, the technological development achieved and the political stability of the country. The tertiary sector (58% of the active population and 75.2% of GDP) is mainly centered on financial and business services. Tourism is growing.

The trade balance is clearly active: exports are mainly to China, the United States, Hong Kong, Singapore and Japan, to whose markets electrical and electronic material, integrated electronic circuits and microprocessors, machinery, optical and precision instruments, iron and steel, plastic objects, chemicals, vehicles and their parts, articles of clothing. Among the main partners for imports (mainly raw materials and semi-finished products) are Japan and China, followed by the USA, Saudi Arabia and South Korea.

The road networks (40,262 km in 2007, of which 94.8% asphalted) and rail networks (1588 km) are excellent. Port traffic is very intense (Taiwan owns one of the largest container ship fleets in the world), headed by the ports of Keelung, Kaohsiung, Hualien and Suao. International airports in Taipei and Kaohsiung.

Taiwan Economic Conditions