Taiwan: Republic of China - interview on foreign investment and business climate with government representative Mou-Shih Ding - Special Advertising Section - includes related articles - Interview

Nation's Business, Oct, 1994

We are the second-largest foreign investor in Malaysia, with $5.9 billion. We are the fourthlargest in Thailand, with $4.5 billion, and also the fourth-largest in Indonesia, with $4 billion.

And our $1.5 billion worth of investments in Vietnam makes us the largest foreign investor in that country.

The ROC government is encouraging U.S. investors to take advantage of these trends by forming joint ventures or other arrangements with Taiwan firms to do business together in Southeast Asia--to "piggyback."

The successful conclusion of the GATT round and the recent economic integration of the European Community and North America seems to signal new enthusiasm for regional cooperation.

Are economic ties getting closer in the Asia Pacific region in the absence of a political consensus? If so, what is the ROC's likely role in a more economically coordinated region?

As many are aware, the AsiaPacific region is increasing in economic importance. The economic power of this region is unmatched in the world. For more than three decades, from 1960 to 1992, the average annual growth rate for Asia-Pacific nations was above 4.5 percent. It seems entirely possible that this region could become a center of gravity for the entire world economy by the 21st century.

In many respects, the current trend is toward increasing cooperation within the Asia-Pacific region. Economic ties of trade and investment between Taiwan and other countries and areas in this region are growing rapidly. In addition to mainland China and the Southeast Asian countries mentioned above, Taiwan maintains extensive ties with Japan. Last year, our trade with Japan reached $32.2 billion.

In contrast to other regions, all the Asian-Pacific economies depend on foreign capital, technology, and markets. Also, the development models followed by these countries differ greatly. Therefore, it would not be feasible for us to form a highly integrated, closed, regional trading system. The ROC and, I believe, all the Asian-Pacific countries can benefit most from a free and open global trading system.

As for the future role of the ROC in the regional economy, our goal is to build Taiwan into an Asian-Pacific operations center. We want to encourage foreign enterprises and local companies to use Taiwan as a base from which to pursue their interests in the region.

These might include manufacturing, product development, repair and maintenance, cargo and passenger transshipment, warehousing and distribution, financial services, telecommunications, and personnel training.

We are already equipped with centers for transportation, telecommunications, finance, manufacturing, product development, and personnel training. We are located on the doorstep of mainland China's coastal provinces, midway between the dynamic economies of Japan and South Korea and the emerging economies of Southeast Asia.

Our businessmen have extensive ties to businesses throughout Asia and share a cultural and linguistic heritage not only with people in mainland China, Hong Kong, and Singapore but also with overseas Chinese communities throughout the region.