Taiwan: a tiger increasingly at bay but still ferocious

Assesses the effects of the Asian economic crisis on Taiwan and identifies some reasons why it has been less dramatically affected than other Asian countries. Discusses its actual and planned policies aimed at strengthening the economy further by maintaining currency stability, improving competitive strengths in both hi‐tech industries and manufacturing, entering new export markets, stimulating domestic demand and reforming financial institutions and regulations. Recognizes the political threats it faces but believes that increasing trade with and investment in China has reduced them.