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SPONSORED SECTION Produced by: Global Media Inc. TAIWAN TAIWAN NO SMALL IS LA N D or a country that occupies just over 13,000 square kilometers, Taiwan’s geographical size belies its economic clout and political importance in Asia and the rest of the world. FTogether with Singapore, South Korea and Hong Kong, Taiwan was among the so-called Asian Tigers that impressed the world with their rapid industrialization in less than a gen- eration following the devastation of the Second World War. From an agricultural economy harmonize its international trade So, while staying faithful to its ready standing on very strong eco- with a per-capita gross national strategy more diligently with its autonomous identity, Taipei has nomic fundamentals, to emerge product of only $170 in the 1960s, foreign policy to ensure that its de also opted to be less confronta- from the 2008 global economic Taiwan catapulted itself from facto allies and trade or partners tional about it and be more prag- slump virtually unscathed and re- the ranks of the underdeveloped can conduct their business with matic in dealing with its much sume its dynamic performance countries in Africa to a hotbed of Beijing effectively. larger, fast-growing neighbor soon after. pioneering technology in the 21st In recent years, Taiwan appears across the Straits. And Beijing ap- The numbers provide a clearer century. It now boasts a per-capita to have struck that optimum bal- pears to have adopted the same picture of Taiwan’s economic GDP of over $35,000. ance in this increasingly integrated attitude. strength, as well as of its improv- Because of its contentious po- world, wherein hard dogma has Clearly, that accommodation in ing and more integrated relations litical status, Taipei, perhaps like had to occasionally accommodate diplomacy has allowed Taiwan, al- with China. no other government, has had to practical realities. CONTINUED ON BACK PAGE Global Media Inc. / [email protected] SPONSORED SECTION No small island While the global economy recov- With the United States, Taiwan ered in 2009 and posted an aver- entered into talks for a Trade and age gross domestic product (GDP) Investment Framework Agreement TAIWAN growth of 5 percent, Taiwan’s GDP or TIFA. Negotiations have stalled surged 10.82 percent, its highest the past three years but both sides level in 24 years, on the back of remain determined to finalize a stronger exports and more robust free trade agreement (FTA). domestic demand. And unemploy- “We would like to have an FTA ment has sunk to a 30-year low. with the United States. I know that But because of its very limited it is not very easy at this stage, but domestic market, Taiwan has pri- the importance is evident. There is oritized overseas trade relations, going to be an FTA with Korea, the especially with neighboring China European Union, and ASEAN+1. But and long-standing partner the this is not enough. This is only one United States. step,” said Foreign Minister Yang A watershed in cross-Strait rela- Chin-Tien. tions, the Economic Cooperation “If we do not have a similar ar- Framework Agreement, or ECFA, rangement with the United States, Once Asia’s tallest building, the Taipei 101 still embodies all the economic was signed by Taipei and Beijing Taiwan will be in a very disadvanta- and technological achievments of Taiwan in the past several years. in 2010 and designed to reduce geous position. We will not be able The ambitious plan involves International Airport’s Terminal 1 eliminate tariff and trade barriers to compete with say, Korean prod- the construction of new roads, and 2. With the completion of the between the two sides. ucts,” the foreign minister added. high-speed rail links, airports, and improvements next year, the facil- Currently, mainland China is Tai- seaports, with some projects fall- ity will raise its current annual ca- wan’s largest export market, fol- Home improvement ing under a build-operate-transfer pacity from 32 million passengers lowed by Hong Kong, and bilateral While looking further afield scheme open to international capi- to 37 million by 2012, and to 45 trade is estimated at $110 billion. to improve trade relations with tal. million by 2018 with the opening of Because about 42 percent of its its neighbors, Taiwan has also “The Ministry of Transport and a third terminal, according to Yeh. goods go across the Straits, the launched a multibillion dollar in- Communications has a special mis- The so-called 18,000-hectare Taiwanese government headed by frastructure program that is aimed sion. Because Taiwan is an island, it “aerotropolis” in Taoyuan will con- President Ma Ying-Jeou has recog- at improving the quality of life, at- is very important to have good air tain hotels, convention centers and nized the need to diversify its ex- tracting more foreign investment, and sea transport networks,” said free trade zones, which play a vital port markets if it wants to remain and making the country an the Deputy Minister Yeh Kuang-Shih. role in the country’s economic de- globally competitive in the long most dynamic trade and transport One of the ministry’s major proj- velopment program. run. hub in Asia. ects is the renovation of Taoyuan Outside of Taoyung, the gov- profits last year. Financial Holding has staked its future growth Home-grown While banking giants around the world on its business with mainland China. struggled to get back in the black, so to speak, Fubon Financial Holding owns Taipei Fubon Mega ICBC posted a 2.44 percent increase in Bank as well as the country’s second-largest its pretax income last year. life insurance company and the largest gen- banks look across A product of a merger of the International eral insurance, property, and casualty insur- Commercial Bank of China and Chiao Tung ance company. Bank in 2006, Mega ICBC has grown to be- Meanwhile, its securities company has se- the Straits come one of the country’s largest financial cured the third-largest market share. groups, with 107 local branches, 19 overseas “China remains our main strategic focus. Amid efforts to internationalize its trade branches, and 3 representative offices abroad. We have an investment in Xiamen through further, Taiwan has not neglected the impor- As of 2010, the multi-awarded bank had Fubon Bank Hong Kong, which was the first tance of keeping its domestic economy stable assets of just over $85 billion dollars. Only Taiwanese bank set up in Hong Kong,” said and making it attractive to potential foreign fourth in size, Mega ICBC, however, emerged President Victor Kung. investors. at the top of the industry in terms of profits. “We also established a general insurance Among the key pillars that kept the Taiwan- “Our relentless goal is always to be the company in China, which is also headquar- ese economy strong during the deep and pro- number one bank in Taiwan through steady tered in Xiamen. In life insurance, we signed tracted recession from 2007 to 2008 was its and not volatile growth. We’d like to increase a contract with Nanjing Zijin Investment, and stable financial sector and banking industry. our international side,” said Chairman Tsai expect to be awarded a life insurance license “Our financial structure has been in a stable Yeou-Tsair. later this year or early next,” Kung added. position because we follow our own regula- “Our bank’s specialty is international trade. For the Fubon group, Taiwan possesses a tions. In fact, we have a surplus in our current If a foreign company wants to come to Taiwan, competitive edge over other regional players account every year,” stressed Finance Minister we have very good connections for them. We when it comes to business in mainland China. Lee Sush-Der. can advise them, and they can use our net- “We have a certain lead in customer service To make the local economy more attractive work. We have a deep knowledge of industry on the retail side, as well as on small and me- to international capital, the government of over the past 60 years,” Tsai added. dium banking. So these are the areas that we President Ma Ying-Jeou nstituted drastic tax To remain competitive globally, Mega ICBC could really contribute to the Chinese banking cuts. is further expanding its operations in China sector,” said Kung. “We did a lot of tax reform. After 30 years, this year and in the Middle East. “We already have a lot of Taiwanese clients our flat rate was lowered to just 10 percent. “We signed cooperation agreements with who are very familiar with mainland China. So, a lot of money is coming back already. Bank of China and Bank of Communication in Through their relationship with us, we can Corporate income tax was also lowered from the first quarter of 2011. But we are not ruling serve as an intermediary—in introducing new 25 percent to 17 percent for all businesses,” out the possibility of forming an alliance with foreign parties to them, helping foreign par- said Lee. other leading Chinese banks,” said Tsai. ties enter mainland China through our clients, In the wake of those new measures, the “Our bank may also be a good bridge for as well as introducing them to potential Tai- banking sector has experienced a resurgence foreign banks and other institutions to get wanese joint venture partners operating in of activity, with Taipei-based Mega Interna- into China,” he also said. China, with us playing the part of corporate tional Commercial Bank reporting impressive Like all players in the local industry, Fubon financier and adviser,” he added.