Taipei’s 101 Tower is a symbol of the island’s economic development and prosperity.

Taiwan has long held a position as an international trading hub, in no small part because of its advanced technology, rapid sea access, and proximity to major commercial centers such as Tokyo, Singapore and Shanghai.

It has a vibrant business culture, an educated population, and an international outlook. And, as China enjoys rapid economic growth both on the mainland and in Taiwan, cross-Straits business is flourishing. The Economic Cooperation
Framework Agreement (ECFA), ratified in 2010, combined with better regulations in a number of sectors, has given Taiwanese and mainland companies even more opportunities for growth.

Cross-Straits investment, currently valued at $110 billion, is set to rise, thanks to the ECFA, whose goal is to reduce tariffs on certain goods moving across the Straits.

Tariff concessions have been lifted on a long list of goods and investment restrictions eased in a number of sectors.

Taiwan’s economy continues to depend heavily on high-tech industries such as semi-conductors and biotechnology.

Companies in three major science parks in Taiwan contributed $74 billion in revenues in 2010, on the back of European and American demand. The island continues to lead the world in many technologies and is moving into other sectors such as tourism.

More tourists

In 2011, single tourists from the mainland will be able to enter Taiwan for the first time. Previously, travel was limited to tour groups and business people. There is no doubt that the impact on the tourist industry will be significant.

Last year 1.2 million mainland tourists visited Taiwan. That number is expected to more than double in the coming years, so, companies in tourism, such as airlines, hotels and theme parks are tailoring their services accordingly.

HAYDN CHEN PRESIDENT OF THE ASSOCIATION OF UNIVERSITIES AND COLLEGES.

“Mainland travelers choose our airline because we offer a unique Taiwanese experience,” was how China Airlines President H. H. Sun, explained it.

“We operate 76 flights a day across the Straits and cater to an increasing number of travelers.”

Telecommunications companies are also set to benefit from the increase in tourism, because it includes business travelers as well.

One of Taiwan’s leading telecommunication providers, Taiwan Mobile, is offering reduced rates for global roaming services across the Straits, through its partnerships with mainland companies.

It is also looking into value added service (VAS) opportunities on the mainland, such as music downloads via mobile phone, which, on the mainland is becoming a multi-billion-dollar industry.

And, while Taipei is still at the center of business on Taiwan, Kaohsiung continues to develop as an international trade hub, supported by its robust shipping business.

Many of Taiwan’s agricultural and industrial products go out via the port there, the largest in Taiwan.

Kaohsiung has also emerged as a popular tourist destination because of its warmer weather and culture with an international flair.

Education ties

Education is another key area that is ripe for cooperation. Until now, students from the mainland could study in Taiwan but only as exchange students. Soon, however, for the first time, they will be able to enroll in full degree programs, a major step forward.

True, the numbers will be restricted at first, but there is already a foundation set up to encourage education exchanges.

“We work closely with member universities on issues such as management and quality assurance of teaching and learning,” commented Haydn Chen, president of the Association of Universities and Colleges, who added that the association is very active in assisting universities in attracting mainland students.

A good example of these universities getting excited about the reforms is Southern Taiwan University (STU) in Tainan.

The school’s president, Dr Chein Tai, had this to say: “We work closely with the private sector to ensure that our degree programs offer students the practical skills they’ll need for their career. I am passionate about tailoring our programs to meet the ever-changing needs of mainland students.”

With its advanced medical system, Taiwan is a logical choice for the study of medicine. In fact, it has also become a leader in treating people from around the region, thanks to its modern medical care and relatively lower costs. One standout in this field is the top school, National Yang-Ming University, located in an attractive part of northern Taipei.

“I’m proud to say that many of Taiwan’s finest doctors studied at our university. We offer a complete range of medical and biomedical programs, including dentistry and life sciences,” the school’s president, Dr. Kung-Yee Liang, said.

“We also have courses in the humanities to ensure that our students receive a well-rounded education to compliment their specialized training.”

This increase in cross-Straits cooperation in education is building a fine foundation for economic cooperation in the future.

Under ECFA’s aegis, companies on both sides of the Straits are making a more concerted effort to develop partnerships that will lead to greater contacts and therefore greater trade and investment.

"We work closely with member universities on issues such as management and quality assurance of teaching and learning."