ABSTRACT
The Taiwan experience poses problems for orthodoxies other than communism. Taiwan’s businessmen are establishing a sphere of commercial influence in Southeast Asia and in South China that may constitute the only real counterpoise to Japanese influence in that part of the world. Taiwan’s developmental effort was characterized by indicative planning, targeting of strategic industries, government-launched flagship companies in key industries like semiconductors and steel, import protection, investment restrictions, export promotion, and rationing of preferential credit to key industries. If Taiwan’s accomplishments are a source of discomfort for others, they have produced surprisingly little satisfaction among the Taiwanese themselves. Taiwan’s domestic and international political relations are overshadowed by issues that remain unresolved since Chiang Kai-Shek and his Kuomintang Party fled the mainland in 1949. Taiwan controls foreign investment in its economy pursuant to the Statute for Investment by Foreign Nationals. Taiwanese private sector investment is pouring into Southeast Asia.
