ABSTRACT
Taiwan's tenancy rate has been much reduced since the Kuomintang (KMT) takeover after V-J Day. Only in recent years has Taiwan embarked on steel production, the development of high technology, and automobile manufacture, the last in the form of joint enterprises with the Japanese. After the land reform came industrial expansion. With substantial US aid, Taiwan's development strategy avoided capital-intensity and prestige industries and concentrated instead on labor-intensive projects for export. The de facto independence of Taiwan over the years has also enabled the island province to reach a working order of diplomacy with the foreign powers, the continuation of which may be vital to its economy. Hong Kong is an island linked with a peninsula and an adjacent area on the mainland. In addition to its position as a banking and shipping center of world importance, Hong Kong is a major manufacturer of textile and plastic materials, electric and electronic equipment, and machinery and chemicals.
