Taiwan

This paper provides the reader with a thorough insight into the bilateral economic relationship between Hungary and Taiwan. Due to the One-China policy Hungary – and most countries in the world – do not have formal diplomatic or political contacts with Taiwan, however Taiwan as an autonomous economic entity seems to be a promising partner for Hungary and other European countries, even though due to the huge geographic distance and to the relative less-known market environment the amounts of trade turnover and investments have still been modest.

The main question of this study is the present and future challenges that influence Taiwan’s development and competitiveness. From among these traits the issue of the high exposition (especially in terms of FDI) and growing dependence on mainland China (the People’s Republic of China), the need for a shift in terms of the main drivers of the future economic development and to mitigate the risks of brain drain and social unrest.