(2) Taiwan’s economy | Straitened Circumstances; Weaker growth exposes the downside of ties with China.
http://www.economist.com/news/fi ... tened-circumstances
Quote:
"A recent meeting between Mr Ma and Xi Jinping, China’s president, in Singapore—the first between leaders of the two countries—was meant to show the promise of more co-operation. Awkwardly, though, Taiwan’s economy is in a slump. GDP shrank by 1% year on year in the third quarter, its first contraction since 2009. Last year Taiwan grew by 3.8%. * * * Yet other export-driven economies in Asia such as South Korea and Singapore are not suffering as much.
"The benefits from Taiwan’s rapprochement with China appear to be topping out. * * * One interpretation is that Taiwan is simply a victim of China’s slowing growth. But there is widespread concern that something deeper is at work * * * 'red supply chain' * * * Until a few years ago, the economic relationship between China and Taiwan was symbiotic. * * * But this complementarity has given way to competition. * * * Taiwanese firms with operations in China are themselves buying more materials and machinery from Chinese suppliers.
Note:
(a) straitened (adj): "characterized by poverty"
www.oxforddictionaries.com/us/de ... _english/straitened
(b) "Taiwanese firms with operations in China are themselves buying more materials and machinery from Chinese suppliers."
Without more, it is hard to tell from what companies Taiwanese firms in China buy. Not necessarily Chinese-owned companies. Could be owned by Taiwanese, Americans. Who knows.
(c) Jonathan Soble, A Slowing Economy in China Stings Japanese Business, Too. New York Times, Nov 17, 2015
(With 2Q15 GDP annualized growth rate at -0.8%, Japan in recession , again)
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