Abstract
Integrating China and Taiwan into the world economy through accession to the World Trade Organization should contribute to stability in the Asia-Pacific region as well as promote further economic development in the two economies. Taiwan’s export-oriented growth has made it a major trader in the world economy, the fourteenth largest by 1995, and it has shifted from being a net receiver of foreign direct investment to being a net exporter of private capital. Strong trading and investment relationships among overseas Chinese have made a significant difference in the economies of South and East Asia and are now contributing to China’s development. There is a need though for an institutional structure in which to address the bilateral and multilateral dimensions of growing economic relations between China and Taiwan.
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