Forum Views ()
Forum Replies ()
Read more with google mobile :
FACTBOX-Five political risks to watch in Taiwan
Yahoo!
My Yahoo!
Mail
More Yahoo! Services
Account Options
New User? Sign Up
Sign In
Help
Yahoo! Search
web search
Home
Singapore
Asia Pacific
World
Business
Entertainment
Sports
Technology
Singapore
Asia Pacific
World
FACTBOX-Five political risks to watch in Taiwan
Reuters - Tuesday, December 15
Send
IM Story
Print
TAIPEI, Dec 15 - The threat of conflict between Taiwan and China is becoming increasingly remote, analysts say, but investors still face a range of political risks.
Following is a summary of key Taiwan risks to watch:
* CROSS-STRAIT RELATIONS
President Ma Ying-jeou's promotion of closer economic ties with China has boosted trade and reduced the risk of military conflict. The government is expected to press ahead with achieving an economic cooperation framework agreement -- essentially the precursor to a free trade deal. Preparations for a currency clearing system with China are more than 50 percent complete, officials said this month. But the issue of ties with China remains highly divisive in Taiwan and there is always the risk of new controversies, as occurred in September 2009 with a visit by the Dalai Lama. In local elections in early December, seen as a test of Ma's policy of engagement with Beijing, his government lost some ground to the opposition. The United States backs China diplomatically but remains Taiwan's staunchest informal ally, infuriating Beijing whenever it sells arms to the island. Obama will continue to sell arms, U.S. diplomats say.
Key issues to watch:
-- Progress in closer economic ties. Markets will watch to see whether economic detente stays on track.
-- The possibility of a historic meeting between Ma and Chinese President Hu Jintao, tipped to take place in 2012 if Ma wins reelection that year, would be a further indication of reduced tensions.
* GOVERNMENT EFFECTIVENESS
Ma has a strong mandate to govern, as the KMT controls parliament and the presidency, which has been positive for government effectiveness and avoiding political deadlock. But widespread criticism of the response to Typhoon Morakot dented the government's popularity and led to a cabinet reshuffle. The high degree of polarisation between the two major parties, the China-friendly Nationalists and the anti-China opposition Democratic Progressive Party has also raised questions about long-term political stability and government effectiveness.
Key issues to watch:
-- Evidence of whether the government is operating more efficiently following the reshuffle.
* CORRUPTION
Taiwan is generally rated as being far freer of damaging corruption than most of its regional peers. But many corruption rankings, including the World Bank's World Governance Indicators, suggest there has been a significant deterioration in control of corruption in recent years. Graft is considered most common in local government, but life sentences given to former president Chen Shui-bian and his wife on corruption charges in September 2009 thrust the central government back into the spotlight.
Key issue to watch:
-- Taiwan's rating in global corruption perceptions rankings. If investors think Taiwan's corruption levels are worsening, markets will suffer. In Transparency International's 2009 Corruption Perceptions Index, released last month, Taiwan's corruption score was slightly worse than 2008, but its ranking improved to 37th from 39th out of 180 countries or regions.
* INTEREST RATE POLICY AND CAPITAL CONTROLS
The central bank says it will maintain loose monetary policy for now, and most economists expect rates to stay on hold this year and into early 2010. But policy tensions could rise if the central bank feels the need to start focusing on containing inflationary pressures while the government remains committed to sustaining the nascent economic recovery.
Another key economic policy issue is coping with flows of "hot money" that have been buoying Asian asset prices. Taiwan announced a ban last month on foreign funds investing in time deposits, and the central bank said it hoped that the $11 billion of foreign speculative money would start flowing out.
Key issues to watch:
-- Comments by ministers and the central bank on monetary policy. Markets will watch for hints that rate rises will resume, or for signs of policy conflict with the central bank.
-- Any sign that capital controls could be tightened further, if hot money inflows do not subside.
* ECONOMIC REFORM
Taiwan continues to place limits on foreign portfolio investment and restricts foreign direct investment in some sectors. As the economy recovers, investors will start to focus again on whether economic reform may relax some restrictions. Key issues to watch:
-- Any announcement from the government on economic reform and measures to boost foreign investment.
Recommend
Send
IM Story
Print
Related Articles
Weyerhaeuser board OKs conversion to REIT status AP - 1 hour 14 minutes ago
Sun Micro wins intellectual property cases Reuters - 1 hour 16 minutes ago
BA to take legal action over planned crew strike Reuters - 1 hour 18 minutes ago
OPEC revises up 2010 world oil demand AP - 1 hour 21 minutes ago
US STOCKS SNAPSHOT-Wall Street opens down inflation concerns Reuters - 1 hour 23 minutes ago
News Search
Top Stories
BA takes legal action to prevent Christmas strikes
Boeing's Dreamliner to make first flight Tuesday
Greek promise of cutbacks leave analysts sceptical
Coconut-carrying octopus stuns scientists
US authorities approve Kraft bid for Cadbury
More Top Stories »
Related Full Coverage
China Economychina economy
All Full Coverage »
ADVERTISEMENT
Most Popular
Most Viewed
Most Recommended
Dubai to pay debt with $10 billion Abu Dhabi fund
Boeing's Dreamliner to make first flight Tuesday
Plastics component affects intestine: study
Courtney Love loses custody of daughter: court
Coconut-carrying octopus stuns scientists
More Most Viewed »
Global stocks mixed amid Dubai debt crisis
Tiny magnetic discs could kill cancer cells: study
Virgin unveils spaceship to offer space tourism
Tiger Woods' girlfriend apologizes in TV interview
Dubai blackout over debt plans to hit Gulf markets
More Most Recommended »
Elsewhere on Yahoo!
Financial news on Yahoo! Finance
Stars and latest movies
Best travel destinations
More on Yahoo! News
Home
Singapore
Asia Pacific
World
Business
Entertainment
Sports
Technology
Subscribe to our news feeds
Top StoriesMy Yahoo!RSS
» More news feeds | What are news feeds?
Also on Yahoo
Answers
Groups
Mail
Messenger
Mobile
Travel
Finance
Movies
Sports
Games
» All Yahoo! Services
Site Highlights
Singapore
Full Coverage
Most Popular
Asia Entertainment
Photos
Copyright © 2009 Yahoo! Southeast Asia Pte. Ltd. (Co. Reg. No. 199700735D). All Rights Reserved.
Terms of Service |
Privacy Policy |
Community |
Intellectual Property Rights Policy |
Help
Other News on Tuesday, 15 December 2009 Iran worked on atom bomb part in 2007
BA travellers face Christmas strike misery
France earmarks millions to digitise treasures
US-TECH Summary
New NASA satellite blasts off on space-map mission
Israel eases restrictions on Palestinians for Xmas
Citi to repay 20 billion dollars in plan to exit bailout
CEOs' switch from cost cutting to boost IT: Gartner
Iran worked on atom bomb part in 2007: report
|
Dubai to pay debt with $10 bln Abu Dhabi handout
Officials: World power meeting on Iran canceled
NBA launches Web, mobile sites for fans in India
Hamas PM vows to 'liberate Palestine' at Gaza rally
U.N. Bhutto assassination inquiry needs more time: Ban
|
Spain jails 11 for attempted Barcelona metro attacks
|
Brazil, U.S. find common ground on Honduras: official
|
Jordan king swears in new conservative government
|
Google phone with T-Mobile contract in January: source
|
Fla. hotel guests move after Legionnaires' kills 1
Afghan conference seeks 'confession' on corruption
U.S. Supreme Court to hear text message privacy case
CEOs' switch from cost cutting to boost IT: Gartner
|
Court won't revive gun lawsuit
Walkout heightens failure fears for climate marathon
Egypt puts archives on Web to boost Arabic content
|
Colo. court: Immigrants records illegally searched
Iran to try 3 Americans who crossed Iraqi border
Evacuation ordered as Philippine volcano spews ash
Thousands evacuate after gas leak in central Ohio
Teen sentenced to 30 years in Florida gang rape
Pakistan seeks clues on jailed Americans
Liberia victims face Taylor's son in US court
Philippines raises volcano alert, orders evacuation
Judge hears arguments in Va. Tech lawsuit
Hong Kong cable network blocked in China
Big bird gets talon caught in DC Metro escalator
India inflation hits 10-month high
China launches landmark Central Asia gas pipeline
Pakistan stocks up on Dubai bailout; rupee lower
Downey Jr. adds punch to stuffy Holmes films
|
Hurt Locker gains traction in awards heavy week
|
Steps from Eiffel Tower sell for 85,000 euros
Leona Lewis attacker held under UK mental health laws
|
Crack: a rising scourge on the streets of Latin America
Chemical plant helps Dutch aubergine grower
Drug traffickers intimidating Mexico journalists
Stephanopoulos starts early shift as 'GMA' co-host
US-ENTERTAINMENT Summary
Tiger Woods finds celebrity media impossible to tame
|
Leona Lewis attacker held under UK mental health laws
Schizophrenic detained for punching pop singer Lewis
'Basterds,' 'Nine' among top Critics' Choice picks
"Basterds," "Nine," lead Critics' Choice field
Iran makes arrests over torn Khomeini picture
Berlusconi in hospital at least till Wednesday: doctor
Boeing's 787 Dreamliner to make first flight Tuesday
Apple cites strong iMac demand amid shipping delays
Obama urges Lebanon to clamp down on arms smuggling
|
Car bombs kill four, wound 15 in Baghdad
Courtney Love loses custody of daughter: court
Blast in Kabul diplomatic district, four killed
|
Samsung Electronics names new CEO
Google phone with T-Mobile contract in Jan: source
Last US banking giants to repay state bailouts
Built back better in Aceh five years after tsunami
|
US Afghan surge to begin this week
Egypt puts archives on Web to boost Arabic content
Obama talks tough with 'fat cat' bankers
Big powers scrap meeting on Iran nuclear program
Wells Fargo to repay all 25-billion-dollar US loan
Costa Rica latest stop for Mexican drug gangs
|
Plastics component affects intestine: study
Fidel Castro says Obama's smile can't be trusted
|
World's longest sea bridge may boost South China economy
|
UK court issued arrest warrant for Livni: report
|
Samsung Electronics names new CEO
Palace politics: Royal audience stirs controversy
SKorea to give medical aid to NKorea this week
Family members found dead in S. California home
Thais probe destination for seized NKorean weapons
Judge's ruling puts Navajo president back on job
Apple cites strong iMac demand amid shipping delays
|
Suicide bomb blast near hotel in Kabul
Colo. man settles claims in 'popcorn lung' lawsuit
Craigslist CEO: Was told eBay's Whitman a monster
|
Large explosion near hotel in Kabul
China cop labeled a martyr after drinking death
Mo. reported inflated food stamp figures to feds
Mayon volcano in Philippines oozes lava; alert up
Man convicted of torturing 76-year-old Calif woman
Top US officer: Taliban harder to defeat
La. student falls under bus during scuffle, dies
Samsung Electronics names new CEO
|
Malaysia arrests 3 Thais with homemade explosives
Malaysia police rescue 6 babies from traffickers
2 guilty of killing CA teen, hiding body in drum
Pakistani stocks trade halted on technical glitch
NZ raises growth forecast and cuts long-term borrowing
ADB: East Asia economies recovering at faster pace
Fitch: no NZ rating impact from debt f'cast revision
Hollywood writers take their research seriously
ADB raises Asian growth forecasts
Mel Gibson to direct DiCaprio in Viking movie: report
Japan's economy 'very severe': PM
Journalists threaten to fight Indonesia censorship
Pakistan
Golden Globe nominations don't ensure Oscar love
|
Samsung promotes former boss' son to key post
FACTBOX-Five political risks to watch in South Korea
Courtney Love loses guardianship of daughter
|
Robert Downey Jr. adds punch to stuffy Holmes films
|
Taiwan dollar firms as Dubai woes ease; eyes c.bank
Movie race wide open ahead of key awards week
|
Americans turn to TV as recession hits spending
|
Josie and the Pussycats purring again
Josie and the Pussycats purring again
|
Americans turn to TV as recession hits spending: survey
Lovely Bones overcomes rough start
|
Rural communities lead Nepal's green fightback
Hollywood writers take their research seriously
|
Richard Dreyfuss film eyes awards-season glory
Nanny Returns to New York's now troubled elite
|
Sports Illustrated puts Stephen Colbert on cover
Dexter season finale slashes records
|
US couple offers hope to disabled Chinese children
Britain's X Factor revives talent show fortunes
Marriage is good for the health: global study
No mystery: 'Sherlock Holmes' a smash
Hollywood writers take their research seriously
Iran prosecutor says Web sites insulted president
Blast near Pakistani minister's home, 20 dead
|
Microsoft suspends Juku after plagiarism claims
Karzai warns corruption fight will take years
Greek promise of cutbacks leave analysts sceptical
Berlusconi attacker apologizes for cowardly act
|
Officials: Bomb attacks in north Iraq city kill 4
Coconut-carrying octopus stuns scientists
LG sets 3D TV target, to offer new lineup in 2010
Rival student groups hold rallies in Tehran: report
|
Abbas sticks by terms for talks, rules out violence
US authorities approve Kraft bid for Cadbury
Bombs kill eight in Baghdad, northern Iraq
|
Karzai in anti-graft speech defends convicted mayor
|
Israel slams British arrest warrant against Livni
Spymaster sees Israel as world cyberwar leader
|
Suicide attack near Kabul hotel kills eight
China warns West from taking up dissident case
|
Bombers breach Baghdad security again, killing four
Abbas sticks by terms for talks, rules out violence
|
Suspected suicide bomb kills one in Kabul
Pacific island recognizes Georgian rebel region
|
Statuette used to hit Berlusconi does brisk trade
|
LG sets 3D TV target, to offer new lineup in 2010
AP NewsAlert
Efforts under way to make Web more accessible
Afghan official: 8 killed in suicide bombing
Motivational speaker accused in Las Vegas death
LG sets 3D TV target, to offer new lineup in 2010
|
Pakistan extends custody of US militant suspects
Australia, Japan want huge cuts in nuclear arsenals
Sun Micro wins intellectual property cases
|
Microsoft suspends Juku after plagiarism claims
|
NC mom sentenced for putting son in boiling water
China says asylum-seeking Uighurs suspected criminals
Obama to pitch energy-saving home remodeling
Official: Explosion kills 10 in central Pakistan
Blast near Pakistani minister's home
The nation's weather
US Senate nears health care bill with new compromises
20,000 evacuated as Philippine volcano oozes lava
AP sources: Ill. prison to get Gitmo detainees
Philippine clashes kill 9 rebels, 1 soldier
NEC Electronics, Renesas eye profit, cost cuts
|
Obama to work to solidify support for health bill
Thousands flee as Philippine volcano spews lava
Obama touting home energy efficiency program
Female vets face homelessness, dearth of services
Pakistani rupee at record low; stocks lower on bomb
RPT-DEALTALK-Political hurdles may slow China-Taiwan bank M&A
China defends high-tech procurement rules: govt
FACTBOX-Five political risks to watch in Taiwan
S.Korea Nov LNG, coal imports up on year
Up in the Air, Nine lead Golden Globes
|
EU group urges China to delay indigenous tech rule
Expert says drug traffickers recruiting from Iran
French rocker Hallyday wakes from coma
Polanski film in competition at Berlin festival
|
Cameron lauds Fox for risking big bucks on Avatar
|
The buddy cop genre lives again on `NCIS' spinoff
Barack Obama statue attacked by Facebook critics
Actors' techniques draw from rival sources
|
Tiger Inc.'s image crash to make sponsors cautious
Patient countersues Indonesian private hospital
Costume exhibition celebrates Diaghilev's passion
Victims of Zimbabwe blitz struggle to build houses
Swastikas on the tree: how the Nazis stole Christmas
Golden Globe nominations don't ensure Oscar love
98-Year-Old Woman Charged With Murder Of 100-Year-Old Roomate
Police Auction Motorized Bar Stool
Edmonton Registers Record-Low Cold Weather
NJ Quadriplegic Wins Right To Operate 12-Gage Shotgun With Breathing Tube
Oklahoma Woman Arrested For Stealing Ambulance
Italian PM Berlusconi Suffers Broken Nose, Split Lip In Attack By Man With Statue
Greece at new risk of being pushed off euro
Bodies of missing Tenn. mom, Jo Ann Bain, and daughter found
Female Breasts Are Bigger Than Ever
AMD Trinity Accelerated Processing Units Now in Volume Production
The Avengers (2012 film), made the second biggest opening- and single-day gross of all-time
AMD to Start Production of piledriver
Ivy Bridge Quad-Core, Four-Thread Desktop CPUs
Islamists Protest Lady Gaga's Concert in Indonesia
Japan Successfully Broadcasts an 8K Signal Over the Air
ECB boosts loans to 1 trillion Euro to stop credit crunch
Egypt : Mohammed Morsi won with 52 percent
What do you call 100,000 Frenchmen with their hands up
AMD Launches AMD Embedded R-Series APU Platform
Fed Should not Ignore Emerging Market Crisis
Fed casts shadow over India, emerging markets
Why are Chinese tourists so rude? A few insights