December 15, 2008
Taiwan Reunification Watch - Now Direct Daily Flights
Beijing and Taipei today announced new direct daily flights, shipping routes, and postal links as the 60 year old tension in the Taiwan Straits subsides (source: Reuters).
This situation is similar to Hong Kong after the handover agreement in 1984 when trade ties were growing strongly but exploded shortly afterwards. For example, the China-Hong Kong reexport trade grew from $7 billion (US dollars) in '83 to near $24 billion by just 1987. Today China is Hong Kong's leading supplier and export market.
According to the Reuters link above the value of China-Taiwan trade in 2007 was $90 billion. We can expect this number to swell significantly in the years ahead. Taiwan manufacturers have been relocating production to the mainland for years now and this process will only accelerate with direct links. What we are witnessing is the peaceful process of economic absorption. When (or if) there is ever a political reconciliation between the two rival political parties of the Chinese Republic, it will be an anti-climax just as it was in Hong Kong in 1997.
Seen in the context of the China-Korea-Japan summit this past weekend, it appears that East Asia is coalescing around China.
This situation is similar to Hong Kong after the handover agreement in 1984 when trade ties were growing strongly but exploded shortly afterwards. For example, the China-Hong Kong reexport trade grew from $7 billion (US dollars) in '83 to near $24 billion by just 1987. Today China is Hong Kong's leading supplier and export market.
According to the Reuters link above the value of China-Taiwan trade in 2007 was $90 billion. We can expect this number to swell significantly in the years ahead. Taiwan manufacturers have been relocating production to the mainland for years now and this process will only accelerate with direct links. What we are witnessing is the peaceful process of economic absorption. When (or if) there is ever a political reconciliation between the two rival political parties of the Chinese Republic, it will be an anti-climax just as it was in Hong Kong in 1997.
Seen in the context of the China-Korea-Japan summit this past weekend, it appears that East Asia is coalescing around China.
Labels: global security, ma ying-jeou, reunification, taiwan
# posted by Sinomania! : 12/15/2008 02:46:00 PM
Subscribe to Posts [Atom]
