Taiwan’s trade with China grew slightly in...
Taiwan’s trade with China grew slightly in October, but officials in Taipei say political and economic obstacles to business remain.
Official figures released last week show two-way trade was $291 million in October after $281 million in September and $269 million a year earlier. Year-to-year growth was 8.2% in October against 4.2% in September, which saw the lowest rise since January 1987.
“The slight rise in October is a temporary phenomenon and we see the volume slowing in the rest of the year,” said Alexander Chen, information department director of the Board of Foreign Trade.
Chen said the lingering impact of Beijing’s suppression of the pro-democracy movement in June; China’s austerity program, which calls for a sharp cut in imports, and a recent devaluation continued to limit trade. China recently devalued the yuan by 21.2%.
Despite the obstacles, Chen said Taiwan-China trade for all of 1989 would reach about $3.4 billion, up from $2.72 billion in 1988.
Taiwan trades indirectly with China, mostly through Hong Kong, because Taipei is still technically at war with Beijing.
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