TAIWAN AFTER 2000: ECONOMICS AND POLITICS

Abstract

The report is a guide about economics and politics of Taiwan at the beginning of the 21 century. In 2000, Chen Shui-bian of the Democratic Progressive Party (DPP) was elected as the first non-Kuomintang (KMT) President and was re-elected to serve his second term since 2004. Polarized politics emerged in Taiwan with the formation of the Pan-Blue Coalition, led by the KMT, and the Pan-Green Coalition, led by the DPP. The former prefers eventual Chinese unification , while the latter prefers Taiwanese independence. Following revelations that lead to an investigation of Chen Shui-bian for corruption charges , the KMT was able to increase its majority in the Legislative Yuan in the January 2008 legislative elections, while its nominee Ma Ying-jeou went on to win the presidency in March of the same year, campaigning on a platform of increased economic growth and better ties with the PRC. Under Ma, Taiwan and China opened up direct flights and cargo shipments. In 2016, Tsai Ing-wen of the DPP became the president of Taiwan. In 2020, she called on the international community to defend the island's democracy in the face of threats from China. Chinese leader Xi Jinping had earlier expressed that Taiwan was part of China, who reserves the right to use force but will strive to achieve peaceful reunification. In January 2020, Tsai was re-elected. The economy of Taiwan is a highly developed economy. It is the 8th largest in Asia and 21st largest in the world. Foreign trade has been the engine of Taiwan's rapid growth during the past 50-60 years. Taiwan's economy remains export-oriented, thus it depends on an open world trade regime and remains vulnerable to downturns in the world economy. The electronics sector is Taiwan's most important industrial export sector. The Taiwanese semiconductor industry forms a major part of Taiwan's IT industry. Due to its strong capabilities Taiwan has been able to distinguish itself from its competitors and dominate the global marketplace