Dear Lord Mayor,
It was a pleasure to meet with you, the councillors and the Chief Executive on Friday 18th March 2011 at lunch at the Lord Mayor’s Parlour; Ambassador Katharine Chang and I greatly appreciated your kind hospitality and convivial discussion, and we hope that this will prove a first step towards the twinning of Belfast and Taipei.
For your reference, please find the attached briefings on.. the current situation in Taiwan for your reference. We hope that you will find them informative and interesting.
Once again, thank you very much for your support in enhancing British-Taiwanese relations.
Yours sincerely,
Chih-Chen Yi 易志成
Deputy Director, Public Affairs Division
Taipei Representative Office in the UK 駐英國台北代表處
Tel: +44-20-7881-2665, Fax: +44-20-7730-3139
50 Grosvenor Gardens, London SW1W 0EB
Briefing on Taiwan’s Current Status
1) Political System
Taiwan has two main parties: the Kuomingtang (KMT, currently the party in government) and the Democratic Progressive Party (DPP, the main opposition.) There are also a number of smaller parties grouped into coalitions around these two main entities.
Presidential Elections
President Ma Ying-jeou (KMT) was elected on 20th May 2008 with a majority of 58.45%. Terms of office in Taiwan last for four years (in which presidents are eligible for a second term). The next election due in March 2012.
Legislative Yuan Elections
Composed of 113 elected members, and having the power to amend the constitution, the Legislative Yuan is commonly referred to as the parliament by Taiwanese newspapers. 73 are elected under the first-past-the-post system in single-member constituencies; 34 are elected under the supplementary member system on a second ballot, based on nationwide votes, and calculated using the largest remainder method; 6 seats are elected by aboriginal voters through single non-transferable vote in two 3-member constituencies. Last elections were on 12th January 2008. 53.5% of the seats went to the KMT and 38.2% to the DPP, leaving 8.3% for other parties. The next election is due in late December 2011/ early January 2012, but may be delayed until March 2012 to coincide with the presidential elections.
Regional Elections
Elections were held in 5 Special Municipalities on 27th November 2010. Overall, the DPP took 49.87% of the total votes, whilst the KMT took 44.54%.
2) Economy
Taiwan’s economy is primarily based around services and the hi-tech industry, and is in a process of recovery following a downturn in 2009 due to the global recession. Exports, led by electronics and machinery, generate about 70% of Taiwan's GDP growth, and have provided the primary impetus for economic development. The island runs a large trade surplus, and its foreign reserves are the world's fourth largest, behind China, Japan, and Russia. Since 2005 China has overtaken the US to become Taiwan's second-largest source of imports after Japan. China is also the island's number one destination for foreign direct investment. Its main export partners are mainland China, Hong Kong, and the US. GDP in 2010 stood at $423 billion, and the IMF GDP (PPP) per capita estimate for 2010 was valued at $34,743, higher than France and Japan.
The Taiwan economy has entered a positive cycle where high trade volumes are driving up investment and spurring on employment and private consumption. Taiwan’s economic growth rocketed 10.5% in 2010. According to the World Bank’s latest annual Global Economic Prospects Report, Taiwan’s GDP is tipped to grow 5% in 2011.
3) Cross-Straits Relations (Relations with Mainland China)
Taiwan signed a major free trade agreement, the Economic Cooperration Framework Agreement (ECFA), with mainland China on 29th June 2010. It is estimated that this move will be worth $13.8 billion to the Taiwanese economy, and it also paves the way for future FTAs with other regional and international countries. Subsequent to this, Taiwan’s Straits Exchange Foundation (SEF) held talks with its mainland Chinese counterpart, the Association for Relations Across the Taiwan Straits (ARATS) in December 2010. The sixth meeting led to several important results, notably increased medical healthcare cooperation, a rise in the number of mainland tourists allowed to visit Taiwan and further discussion on investment protection.
4) Taiwanese Society
Taiwan is currently debating a wide range of health reforms. On 10th January 2011 the legislature passed the Hospice Palliative Medical Care Act, giving family members of terminally ill or comatose patients the decision to allow doctors to not resuscitate the patient.
The government is also seeking to expand the range of incomes that can contribute to National Health Insurance (NHI), thus hoping to reduce the current deficit in medical spending. As life expectancy has dramatically since the current NHI system was introduced in 1995, efforts are also being made to shift focus more towards preventative medicine to again reduce costs. The legislature passed an amendment to the National Health Insurance Act on Tuesday 4th January 2011.
Debate is also underway for an increase in pay in the public sector. Some in the government argue that this would encourage the private sector to also raise salaries, although there are arguments that government debt is too high to justify such a move.