Economy of Chinese Taipei appears to be on a steady growth path, given the ongoing implementation of macroeconomic policy measures and structural reforms, including trade liberalization, with the authorities forecasting GDP growth of 4.25 percent in 2006, according to a WTO Secretariat report on the Trade policies and practices of Chinese Taipei.
But a number of challenges remain, as the Chinese Taipei authorities recognize. The report says that of great importance to Chinese Taipei's longer-term growth prospects will be its efforts to implement structural and other economic reforms to boost competition, including trade liberalization particularly in agriculture.
The report also says that further improvement of Chinese Taipei's investment environment would contribute to attracting inbound direct investment, and improving the efficiency of its economy.
The report mentions that "textiles and clothing exports have been decreasing in recent years. In 2004, it accounted for about 7% of Chinese Taipei's total merchandise exports, down from about 10% in 2001.
Imports of textiles and clothing also decreased slightly between 2001 and 2004, from about 1.9% to 1.4% of the total imports.
The liberalization of textiles and clothing trade, as a result of the expiry of the WTO Agreement on Textiles and Clothing, left Chinese Taipei with various challenges, such as strong competition in export markets.
To help the industry meet these challenges, the government has established a coordination centre to remove investment barriers and provided support for technological development."
