Miami, United States. – In A recent article Posted in the important digital magazine East Asia Forumthe renowned Taiwanese researcher Chiang Min-Hua, makes a deep analysis of the economic situation that the Republic of China Taiwan lives that, despite the harassment of the China Communist, he has been able to grow and develop at extraordinary levels, but indicates that the risks they face are not yet exceeded.
The first good news is that the Republic of China Taiwan has had economic growth: the island’s economy has shown a remarkable resistance to crises, with a growth rate of 4.3% in 2024, despite the pressures of the Military actions of China and diplomatic harassment.
From the management of the new president-elect democratically in the Republic of China Taiwan, Lai Ching-TE, initiated in May 2024, China has been intensifying its military presence and its intimidation tactics in the region, which has generated concern about The stability in the Taiwan Strait. This includes an increase in military exercises and maneuvers aimed at exerting pressure on the Republic of China Taiwan. However, concern about the risk of an attack has decreased in the Taiwanese population, where only 24% believe an invasion.
Information and Communications Technologies (ICT) have proven to be the main bastion of the Taiwanese economy. The quantity and quality of their products – specially semiconductors – have turned out to be essential for world production.
From the fact that the Republic of China Taiwan began to withdraw the production in which it maintained in continental China, especially for American tariffs to Chinese products, Taiwanese exports have tripled. This has led to a great increase in investment and production on the island.
The company Taiwan Semiconductor Manufacturing Company is the largest producer of Micro and Nano Chips in the world, being in this manufacturer of 62% of the world total. But total sales could decrease this year due to possible American sanctions to China and by the same decrease observed in the communist economy of China.
The world demand for TAIWANESE ICT products has done nothing but grow, they have taken as a strategy to establish factories in various countries, such as Mexico, Japan, Germany and the United States, especially in the state of Florida.
The first risk is inflation, which erodes the income of the population, and since much of the expense they make in Taiwanese homes has grown, and salary increases have not been enough to keep the passage, the government has had to expand its Social expenditure at levels that had not been seen, their social spending doubled in the last decade. The debts in which Taiwanese households have incurred are one of the highest per capita in the world.
The excessive participation of the ICT industry in the Republic of China Taiwan makes it a lot depending on it, causing the other industries not to keep it growing, especially in salary matters. This unit causes that, if this industry has a problem, the entire country will suffer. The repercussions would affect the entire Taiwanese economy.
Social spending has become a challenge for the Government of the Republic of China Taiwan, since the aging of its population forces to increase pensions and services to the oldest population. Today there is an uncertainty in the near future of the economy.
The other great challenge is defense spending, higher than any country should normally invest, to maintain the communist threat at bay. Large investments in military technology and weapons are a burden that government cannot avoid. The great challenge of maintaining this investment in the defense of the Republic of China Taiwan can unbalance its thriving economy.
The example given by the Republic of China Taiwan to the world, of being able to carry out a nation in freedom, democracy and with an intimidating military threat, serves mostly for countries that need a model to develop, even for nations that are under Tyraniah, when they can free themselves, they can take a lot of the Taiwanese model, such as Cuba.
It should be noted that economic growth and a strong national defense complement each other. While a resilient economy could sustain spending in long -term national defense, a solid defensive capacity will improve business confidence and promote economic prosperity. If an imbalance was happening in either factors, the researcher MIN-HUA, the Republic of China of China Taiwan, would take a risk of having a gloomy future.
The care of the population, through serious budgets, sensible public policies and honesty, added to a transparent democracy, always works. Cubans have natural resources, access to markets and a trained population. Once they are released, with these requirements they can become a regional power and take out the nation forward, with freedom, democracy and order.
René Bolio is president of the Mexican Commission on Human Rights AC.
