The economy of Taiwan displays an expected resilience despite its increasing diplomatic isolation, following the loss of its United Nations seat to China in 1971.
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Initials BJB/1915 BJB/1925
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Background: The economy of Taiwan displays an expected resilience despite its increasing diplomatic isolation, following the loss of its United Nations seat to China in 1971.
It enjoyed its most prosperous year to date in 1973 despite the rigours of the international economic scene and officials boast that the trade of this island surpassed that of the entire mainland.
The mood of confidence is boosted by increasing foreign investments and expanding trade with more than four times the number of countries which recognise it. Only 31 states still have diplomatic ties with Taiwan.
Official figures on investment last year, totalled 189 million U.S. dollars (82 million sterling). Although, it is a levelling-off of 1973's peak of 248 million U.S. dollars (about 108 million sterling), it is still the second highest ever recorded.
The United States still provides the largest single source of investment. The total already committed by American investors since 1952 to 1973 (1974's breakdown is not available) was 390 million U.S. dollars for 220 projects.
The overseas Chinese also have a high stake with about 363 million U.S. dollars (245 million sterling) up to 1974.
The Japanese also have an equally active investment policy in Taiwan.
Manufacturing industries, especially electronics, chemicals, petrochemicals and basic metals account for the bulk of the foreign investments, while service industries are the major fields of the overseas Chinese investments.