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Why the Taiwan's Economy Matter to China? Economy of Taiwan
Taiwan, or officially the Republic of China. The controversy surrounding the political status of Taiwan is a problematic situation in which many people disagree. There are two Chinas based on the current geopolitical situation; the first is the People's Republic of China, commonly known as "China," and the second is the Republic of China, commonly known as "Taiwan." The Taiwan lost its United Nations seat as China in 1971. Instead, the seat was given to the People's Republic of China. This made the People's Republic of China the rightful government of China internationally. Most countries recognize the People's Republic of China as the leader of China, Taiwan and Hong Kong. On one hand the nation is constantly living under at least the passive threat of being invaded by one of the world's most powerful militaries, but even more mundane realities become an issue.
Despite all of these substantial hurdles, Taiwan powers on. The economy of Taiwan is a highly developed free-market economy. It has a purchasing power parity of $59,398 around or above some developed West European economies and Japan. The GDP of Taiwan grew 6.3% last year, the fastest expansion rate since the 10.3% rebound in 2010 after the global financial crisis. And it has also beat the growth rates of Japan and South Korea.
So, what is going with the Taiwan economy?
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