InfoAnda - FACTBOX-Key political risks to watch in Taiwan

Pakistanis angry over detentions in Times Sq. case
Monday, May 24, 2010
ISLAMABAD – Relatives of three men detained by Pakistan for alleged links to the suspect in the attempted Times Square bombing say the men are innocent.
They

Taiwan denies boycotting Australian film festival
Thursday, August 6, 2009

AFP - Thursday, August 6TAIPEI (AFP) - - Taiwan's Beijing-friendly government on Wednesday denied boycotting an Australian film festival amid a row over the e

Merkel's support dips, regional ally resigns International
Thursday, September 3, 2009

By Sarah Marsh and Noah Barkin

BERLIN (Reuters) - Chancellor Angela Merkel suffered a double blow on Thursday as a senior party ally in east German

Minister seeks closure of anti-Berlusconi websites
Wednesday, December 16, 2009
ROME (AFP) - – The Italian government moved Tuesday to close down Internet sites encouraging further violence against Prime Minister Silvio Berlusconi, who

Asian markets mixed after Wall Street rally
Wednesday, March 18, 2009

By ELAINE KURTENBACH,AP Business Writer AP - Wednesday, March 18SHANGHAI - Asia's stock market rally seemed to be running out of steam Wednesday, despite an

Iran temporarily bans import of some luxury goods: report | | 8 November 2012
US security firms funnel cash to Taliban: report | 8 October 2010
Intel zeroes in on enterprise customers with first tablet wave | | 28 September 2012

Chongqing makes China's happiest list | 29 December 2010

Forum Views () Forum Replies ()

Read more with google mobile : FACTBOX-Key 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-Key political risks to watch in Taiwan Reuters - Sunday, September 5 Send IM Story Print By Ralph Jennings TAIPEI, Sept 5 - The threat of military conflict between Taipei and Beijing has faded, raising the appeal of Taiwan for foreign investors, but sudden policy shifts and fractious local politics could cool the investment climate. Following is a summary of key Taiwan risks to watch: * INTEREST RATE POLICY AND CAPITAL CONTROLS Taiwan's central bank raised interest rates in June for the first time since the crisis, and is expected to hike them 12.5 to 25 basis points each quarter through to end-2011 [ID:nSGE65N0D0]. However, some analysts say a severe enough slowdown in the U.S. economy could pause those hikes for a quarter or two. The hikes signal that Taiwan authorities believe the $414 billion export-reliant island economy is gathering steam despite sluggish CPI [ID:nTOE63602D] and stubborn unemployment that remains at an unusually high 5.17 percent [ID:nTPV001880]. Forecast-beating GDP growth [ID:nTOE67F07A] gave support to this view. The central bank also remains wary of "hot money" inflows that have buoyed Asian asset prices. Some of this money has already departed: Foreign funds sold a net $4 billion of Taiwan stocks <.TWII> in May and another net $1.25 billion in August due to risk aversion driven first by the euro zone debt crisis and later fears of a double-dip recession in the United States. The interventionist central bank moves almost daily to stop speculation in the island's currency market, dealers in Taipei believe. Earlier this year it warned local and foreign banks to follow regulations when trading foreign exchange forward contracts, another move to discourage hot money [ID:nTOE60L08O]. But economists say the undervalued Taiwan dollar stands to catch up with other Asian currencies on any gains in the Chinese yuan <CNY=CFXS>, especially following Beijing's flexible yuan policy announced in June. The Taiwan dollar is an ideal proxy for the nonconvertible Chinese unit due to the island's fast-growing trade ties with China, and the central bank is expected to allow some currency appreciation as a result of China's policy shift. What to watch: -- Economists expect the central bank to raise rates again at a quarterly policy meeting in September by 12.5 to 25 basis points, and make a similar move in December. [ID:nTOE65O026] -- Capital controls could be tightened further if hot money resurfaces as an issue. This would push down the Taiwan dollar. However, analysts do not expect the kind of rigid capital controls that would cause major outflows. [ID:nHKG263506] -- The central bank's response to any appreciation of the Taiwan dollar due to a firmer yuan. * CHINA-TAIWAN RELATIONS Taiwan President Ma Ying-jeou's promotion of closer economic ties with China after decades of hostility culminated on June 29 in a landmark free trade deal that cuts import tariffs on about 800 items and helps the island's financial sector. [ID:nECFA] That economic cooperation framework agreement handily cleared the island's parliament in August, despite noise from the opposition, and is expected to take full effect on Jan. 1, setting the stage for talks with China on the next round of tariff cuts. The deal also positions Taipei to sign free trade deals with its other major world trading partners [ID:nTOE67805H] as China is seen muting its usual opposition to such agreements. Beijing normally forbids its diplomatic allies, including the world's most powerful nations, from official deals with Taiwan as it sees the island as part of its territory rather than a sovereign nation. But Taiwan and Singapore, the island's No.6 trade partner, said on Aug. 5 they would begin FTA talks [ID:nTOE67400Q] and China voiced no objections. In further signs of improved China-Taiwan ties, the island's stock market opened this year to qualified Chinese investors, while trade and shipping links established since 2008 will help boost trade and reduce the risk of military conflict. But the issue of ties with China remains highly divisive in Taiwan and there is always the risk of new controversies, especially as 2010 is a local election year with the winning party having a strong shot at the 2012 presidential race. In local elections last December, seen as a test of Ma's policy of engagement with Beijing, his government lost some ground to the anti-China opposition that Beijing hopes to keep out of power. What to watch: -- Washington is weighing Taiwan's request for F-16 fighter jets, a sale described as a "red line" for Sino-U.S. relations, and other arms packages, but any decision is not expected until at least 2011 as U.S. officials seek better China ties [ID:nTOE66M04U]. If a sale threatens ties with China, the impact on Taiwan asset prices will be negative, with stocks of firms that have benefited from greater access to China hit the hardest. -- Results of the Nov. 27 local elections covering about 60 percent of the electorate and Taiwan's major cities. If the ruling party wins big, it signals support for more trade dialogue with China. If the opposition gains, China relations could sour. -- Talks on further tariff reductions that could help Taiwan's biggest industries such as electronics, PVC plastics and machine tools. Beijing may resist making concessions on these as it wants to develop its own industries. -- China's blessing for free-trade agreements between Taiwan and other governments, including the world's biggest economies, would advance Taiwan's long-term competitiveness strategy and signal improvement in Beijing's ties with Taipei. * GOVERNMENT EFFECTIVENESS Ma has a strong mandate to govern, as the KMT controls parliament and the presidency. This has bolstered government effectiveness and helped to avoid political deadlock. But widespread criticism of the response to Typhoon Morakot last year dented government popularity and led to a cabinet reshuffle. That storm, the worst in 50 years, triggered mudslides that killed about 700 people. A sudden deal in October to allow U.S. beef imports despite mad cow disease fears also backfired, prompting Taiwan's parliament to scrap part of the agreement and irritating Washington. Cabinet flaps that saw one minister quit and another offer his resignation have raised further questions about ruling party leadership ability [ID:nTOE62B01S], although the president has avoided major flaps over the past four months. The high degree of polarisation between the two major parties, the China-friendly Nationalists and the anti-China opposition Democratic Progressive Party , can undermine policy continuity and increase uncertainty. What to watch: -- Markets are unlikely to react to domestic political controversies unless they significantly weaken the KMT's hold on power, the strength of which will become clearer after the Nov. 27 local elections. If that happened, the risk of policy deadlock and frostier ties with China would be a drag on markets. * ECONOMIC REFORM Taiwan puts 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. In a sign of growing focus on competitiveness, the government has cut the corporate income tax rate from 20 to 17 percent. [ID:nTOE64S005] What to watch: -- Any announcement from the government on economic reform and specific measures to boost foreign investment. This would be broadly positive for the stock market. Recommend Send IM Story Print Related Articles US-BUSINESS Summary Reuters - 1 hour 7 minutes ago What might make the Fed flinch? Reuters - 1 hour 7 minutes ago Raytheon's share slide overdone -Barron's Reuters - 1 hour 44 minutes ago Debt levels should fall after pre-crisis jump: BIS Reuters - 1 hour 59 minutes ago Solvay invests in hydrogen fluoride for China JV Reuters - 1 hour 59 minutes ago News Search Top Stories US troops fire back as suicide bombers kill 12 in Baghdad 78-year-old woman found alive after week missing in Alps Technical glitch grounds homemade Danish rocket Japanese rider Tomizawa dies in San Marino Moto2 GP A month on, Chile miners face uncertain rescue date More Top Stories » ADVERTISEMENT Most Popular Most Viewed Most Recommended Japanese rider Tomizawa dies in San Marino Moto2 GP Sharapova, Federer battle on in US tennis Open Zeta-Jones 'furious' at late cancer diagnosis for Douglas A month on, Chile miners face uncertain rescue date BP spill costs hit 8 bln dlrs as crews unearth clues More Most Viewed » Earth's upper atmosphere shrinking, scientists say Tiger's ex breaks her silence on sex scandal Most US students think Beethoven is a dog Unchecked migration would see Singapore swell, Haiti halve Court blocks California gay marriage 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 World Cup 2010 Copyright © 2010 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 Monday, 6 September 2010
78-year-old woman found alive after week missing in Alps
Islamist threat to Germany is growing say police |
Sarkozy pensions plan faces angry French street
Berlusconi rival Fini will not force election |
Technical glitch grounds homemade Danish rocket
Attack on Iran would destroy Israel: Ahmadinejad |
ETA declares ceasefire in Basque independence battle
Japanese rider Tomizawa dies in San Marino Moto2 GP
Teen star Noh boosts Order of Merit bid
Scandal-hit Pakistan well beaten by England in cricket Twenty20
Aussies muscled out of world basketball championships
Oracle offered job to ex-HP CEO Hurd says source |
Food fight breaks out as locavores defend their turf
Historical Istanbul hotel revives glorious past
Greek island lovers star in taboo-breaking documentary
FACTBOX-Key political risks to watch in Taiwan
Michael Jackson auction 'not against his wishes': report
Taiwan's HTC: iPhone's `quiet' challenger
George Clooney shoots first at box office |
U.S. comedian Robert Schimmel dies after car accident |
Internet an equalizer for people with disabilities
Charter referendum new test for Turkey's PM Erdogan
Germany to extend life of nuclear reactors
Guatemala landslides kill dozens, toll seen rising |
Iraqi troops in spotlight as Baghdad bombers kill 12
Nineteen killed in suicide bombing in Pakistan |
Former HP boss may move to Oracle
Australia's Gillard expected to form new government |
US servicemember dies in fighting in Afghan east
Cuban blogger Sanchez calls media prize a 'shield'
Basque separatists ETA declare ceasefire
US troops fire back as suicide bombers kill 12 in Baghdad
Japanese public backs PM Kan vs Ozawa by wide margin |
US-TECH Summary
Bumper profits fail to dispel wider worries
Afghan toll of foreign troop deaths in 2010 hits 500 |
Oracle offered job to ex-HP CEO Hurd says source
Attack on Iran would destroy Israel
Quake-hit New Zealand city remains shut |
North Korea to free fishermen after month in captivity |
Australia close to forming government but new poll still a risk
Mideast talks to resume in Egyptian Red Sea resort
Bomb blast wounds five in Tajikistan nightclub |
Quake-hit New Zealand city remains shut
Hit on Iran would spell Israel's 'eradication': Ahmadinejad
War, corruption swell number of Afghan street kids |
Emergency extended in New Zealand's quake-hit Christchurch
Afghan Central Bank: Kabul Bank has `stabilized'
Japanese maestro Ozawa makes comeback after surgery
Charter referendum new test for Turkey's PM Erdogan |
Vatican says in touch with Iran over stoning case
New Zealand capture fourth women's rugby World Cup
Two Infants Die In Arizona Car Crash
Legalize it: Mexico marijuana smokers gather
Las Vegas Casino Evacuated After Bomb Scare
Ohio Man Indicted For Locking Up, Abusing Family For 15 Years
Isaac Julien's art seeks to 'allegorise' news tragedy
Earl Fizzles, Gaston To Form
Syrian soap causes Ramadan stir
'The American' reigns at weekend box office
US-ENTERTAINMENT Summary
George Clooney shoots first at box office
Pirates rob tanker as attacks rise in S.China Sea
U.S. comedian Robert Schimmel dies after car accident
Seoul shares gain 0.7 pct on auto, tech issues
Pakistani c.bank buys back 19.85 bln rupees of govt paper
Taiwan cbank chief calls for Asian FX mechanism
China vows to increase foreign imports: report
China to have 200 million vehicles by 2020
PAKISTAN
Seoul shares gain 0.7 pct on auto, tech issues
S.Korea bonds weaker ahead of auction, on US data
TEXT-NZ's Tower sees NZ$5 mln impact from earthquake
Quake-hit NZ city remains shut, mkt reaction muted
World's Longest Trekking Route To Open In Nepal
Hariri says was wrong to accuse Syria over killing
Merkel sets stage for nuclear power battle
Iran boosts nuclear work, bomb concern remains: IAEA |
Graft and threats of violence cloud hopes for Afghan vote |
Spain rejects ETA truce, demands permanent disarming
Nokia bets on new smartphones for recovery
Russia, Israel sign military cooperation deal
Fresh suspicion over Pakistan-Australia Test
US mulls approval of GM salmon
Oracle offered job to ex-HP CEO Hurd: source
Blair cancels book-signing over protests |
Afghans protest US church's plans to burn Quran
Spanish govt says ETA ceasefire is insufficient
KIA Motors America Posts 10 Percent Sales Hike
Avatar director vows to aid Amazon tribe
France faces serious disruption in pensions strike |
Search For Body In California Landfill Enters Fourth Day
Police investigating Afghan journalist's murder
Russia's Putin says undecided about 2012 election |
Ex-HP CEO Hurd In Talks To Join HP Rival Oracle's Top Brass
Black Widow Gobbles 181 Chicken Wings Securing Top Honors In Eating Contest
Afghans protest U.S. church's plans to torch Koran |
Dog Treats Recalled After FDA Finds Salmonella
US-TECH Summary
George Clooney's "The American" Tops Box Office Weekend
Nokia bets on new smartphones for recovery
Study: Few Americans Able To Permanently Shed Pounds
Seven Boaters Rescued Off Charleston
Elective Mastectomy Effective In Lowering Breast Cancer Risk In Some Women
Suicide car bomber kills 19 in NW Pakistan: police
Nineteen killed in suicide bombing in Pakistan
Emergency extended in quake-hit New Zealand city
Malaysia, Indonesia bid to ease tensions after maritime spat
Nokia bets on new smartphones for recovery |
China's 'miracle' Shenzhen marks 30 years
Oracle offered job to ex-HP CEO Hurd: source |
Australia poised for new government
Indonesia's lax gun control a boon for militants
Jordanian websites shift political dissent online |
Greenpeace two get jail terms in Japan whale meat case
Fresh suspicion over Pakistan-Australia cricket Test
N.Korea finishes preparing for key party meeting
A hoax? Joaquin Phoenix film gets viewers guessing |
Giant hay bale kills former ELO cellist |
Chinese film on 1960 labor camps cheered in Venice |
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

USD EUR - 1 year graph	VPN on MacOSX	BlogMeter 1.01