TAIWAN: Could China trade pact reduce cross-strait tension?*

Trade is Taiwan’s lifeblood, and the administration of President Ma Ying-jeou is banking on a new trade agreement with mainland China giving the economy a shot in the arm. The self-governing island sees no alternative but to do a deal with Beijing to allow its exports greater access to the giant China market.Taiwan, with some 23 million people crammed into an area half the size of Tasmania, is a world centre of the information technology industry. Taiwan’s investors have poured in excess of $100…

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