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Impact of Closer Cooperation with China on Taiwan’s Economic Development 193
V. Conclusion
China is the fourth top exporter of the world. It is
also the third largest economy in the world. It holds
US$1.9 trillion in foreign exchange reserves. It is also
the largest powerhouse of the world as well as one of
the most important consumer markets. On the other
hand, Taiwan used to be the largest exporter of umbrellas,
toys, shoes, and textiles. Now, it is the largest manufacturer
of motherboards, notebook PCs, wafers, and
IC products. Closer cooperation makes the two economies
complement each other. Formation of a Taiwan-China-Hong
Kong free trade zone is the first step
to strengthen that closer economic cooperation for mutual
benefit.
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