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In the absence of formal diplomatic relations, contact between the Taiwanese and New Zealand governments takes place through informal representative offices. In New Zealand's case, relations are managed by the New Zealand Commerce and Industry Office in Taipei. The office is a subsidiary of the Wellington Regional Chamber of Commerce but is staffed by a number of officers with backgrounds in New Zealand Government departments (Ministry of Foreign Affairs and Trade, New Zealand Trade and Enterprise, Tourism New Zealand, and the Immigration Service). The work of this office is supplemented by informal travel by officials of both governments. There is an annual Informal Economic Consultation between agencies of the two governments responsible for trade and economic matters.
People-to-people links are extensive. Large numbers of Taiwanese have migrated to New Zealand over the past 16 years. The Taiwanese community is particularly strong in Auckland. The New Zealand community in Taiwan is growing rapidly, in part due to Taiwanese New Zealanders returning to Taiwan. In addition, employment opportunities in Taiwan are good for certain professions - teachers in particular. A growing level of cultural exchanges exist between New Zealand and Taiwan, with links between Maori and Taiwan's aboriginal peoples playing an important part in this contact.
Taiwan is an important trading partner for New Zealand. It is our eighth largest export market. New Zealand dairy, meat, fruit, seafood and forest products all receive a warm welcome from local consumers. Taiwan is our twelfth largest source of imports. It is also an important source of tourists students and investment. One airline currently serves the direct Taiwan-New Zealand route; Eva Air with two flights a week. There are also good shipping linkages.
Although bilateral trade ties are healthy and WTO accession has seen a number of improvements to New Zealand's market access conditions, Taiwan nevertheless maintains a number of barriers to trade that are of concern to New Zealand exporters. Trade access issues still form a major part of the work of the New Zealand Commerce and Industry Office in Taipei. The Doha Round WTO negotiations will also give New Zealand a good opportunity to negotiate improved access for its agricultural, fisheries and services exporters into Taiwan’s market.top of page
Land Area - The island of Taiwan has an area of 36,000 sq km. - Population - 22.6 million - Capital City - Taipei - Religion - Buddhism, Daoism and Christianity have the greatest following - Official Language - Mandarin but Taiyu (basically Hokkien dialect) is growing in usage.
Political system - Representative democracy - Executive branch of government - The Executive is headed by the president who appoints the premier. The Premier, in turn, appoints Ministers of the Executive Yuan. - Legislative branch of government - Legislative Yuan - Last election - President - March 2008; Legislative Yuan December 2007 - Next election due - President - March 2012; Legislative Yuan - 2012 - Senior office holders - President Chen Shui-bian (directly elected); Premier Frank Chang-ting Hsieh (appointed by President)
GDP - US $356 billion (2006) -
GDP Breakdown - (EIU 2005): Manufacturing 25.5%, Finance, Insurance and Real Estate 21.5%, Commerce 19.1%, Government Service 10.9%, Transport and Communications 7.1%, Agriculture, Forestry and Fishing 1.7%
(EIU 2006): Manufacturing 21.4%; Commerce 18.9%; Finance, insurance & business services 18.7%; Government services 11.0%; Transport & communications 6.3%; Construction 1.7%; Agriculture, forestry & fishing 1.6%; Electricity, gas & water 1.5%
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GDP Per Capita - US$16,030 (2006) or US$30,084 (2006) when adjusted using purchasing power parity - Exports US$188 billion (2005); US$224 billion (2006)
- Imports - US$170 billion (2005); US$202 billion (2006) -
Main exports - (2006): Electronic products: US$62.8 billion;
Optical, photographic measuring and medical instruments: US $14.7 billion;
Machinery: US$ 17.1 billion;
Iron, Steel and articles: US$14.3 billion;
Chemicals: US$11.3 billion;
Electrical machinery products: US$9.9 billion;
IT&C Products: US$ 9.3 billion;
Other metal goods US$10.9 billion;
Yarns: US$8.7 billion;
Transportation equipment: US$7.4 billion
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Current account - US$16.2 (2005) (EIU estimate); US$25.2 (2006) (EIU estimate) -
Inflation - 1.6% (2004) 2.3% (2005) (EIU estimate) -
Foreign Exchange Reserves US$266.29 billion (2007) -
Total External Debt - US$76.2 billion (2005) (EIU estimate); $97.2 billion (2006) (EIU estimate)
Source: 'EIU' = Economist Intelligence Unit
NZ Exports (FOB) - NZ$ 786,380 million FOB (year ending June 2007). Seventh largest export market. -
Main Exports - Frozen beef;
Milk powder;
Unwrought aluminium;
Sheep meat;
Fresh Fruit;
Malt extract
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NZ Imports (CIF) - NZ$ 834 million CIF (year ending June 2007) -
Main Imports - Computers;
Stainless steel; flat-rolled products; Petroleum oils, not crude;
Machinery & parts;
Bicycles;
Screws, bolts, nuts, coach screws, etc
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Services Trade - Important market for tourists (27,825 visitors in 2006) and education sales (2,495 Taiwanese studied in NZ in 2005)top of page
New Zealand does not recognise the Government of the Republic of China. New Zealand interests in Taiwan are represented by the New Zealand Commerce and Industry Office [external link] and Taiwan's interests in New Zealand by the Taipei Economic and Cultural Offices in Wellington and Auckland. Informal and unofficial visits or exchanges also take place.
The absence of political or diplomatic links does not get in the way of a vibrant trading, economic and cultural relationship. Taiwan is our eighth largest export market, an important source of imports, a major tourism market, and a significant source of investment. There is a large Taiwanese community in New Zealand and the New Zealand community in Taiwan is growing. Cultural links between the aboriginal people of Taiwan and Maori are also growing. There is great potential for the informal relationship to expand.
New Zealand and Taiwan have contact within APEC where Taiwan (termed Chinese Taipei) is a member and the WTO (where Taiwan is known as the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu), as well as in a couple of fisheries conventions and the OECD (where Taiwan participates in the Steel, Competition Policy and Trade Committees). top of page
Taiwan has a long history of human settlement. DNA evidence suggests that Taiwan was the original source of the Malay peoples, who occupied much of Southeast Asia, and the peoples of Polynesia. The arrival of the Maori in New Zealand marked the final stage in this journey.
In the period prior to the 16th and 17th centuries, the majority of Taiwan’s population was non-Han Chinese, belonging to more than a dozen indigenous tribal groups, with distinct languages and cultures. Although Taiwan also became the home to pirates and limited numbers of other Chinese from Fujian Province across the Strait, it was by and large left alone until the onset of European colonisation. The Dutch occupied the south-western part of the island in 1624; in 1661 they were expelled by Ming Dynasty soldiers who had fled the mainland; the Ming forces surrendered to the Qing in 1683; the Qing Dynasty administration was replaced by the Japanese in 1895; which, in turn, was replaced by the government of the Republic of China in 1945. In 1949 Taiwan became the final refuge of the Government and forces of the defeated mainland Chinese Nationalist administration under the leadership of Chiang Kai-shek.
Over the past five centuries, Taiwan has experienced several waves of Han Chinese settlement, the most recent arriving with Chiang Kai-shek and his supporters in the late 1940s. The indigenous (non-Han) peoples who originally inhabited the island tended either to retreat into the mountainous interior or become assimilated. Only two percent of Taiwan's population is now non-Han. In recent years indigenous and Hakka cultures have begun to experience something of a renaissance, and are reaching out to form links with overseas indigenous communities, including Maori.
The history of Taiwan since 1949 was initially one of authoritarian one-party rule by the Kuomintang (KMT), confrontation with the mainland, and the development of a highly successful export-focused economy. Democratic change began slowly in the 1980s and in the course of the 1990s Taiwan developed one of the most vibrant and democratic political systems in the Asia-Pacific region. The KMT lost power in 2000 when the Democratic Progressive Party’s (DPP’s) Chen Shui-bian was elected President. Chen won a second four-year term in March 2004. In the March 2008 Presidential elections, the DPP candidate lost out to the KMT candidate Ma Ying-jeou. Ma will assume office in late May. top of page
In December 2007 the KMT won a majority in Taiwan’s Legislative Yuan (parliamentary) elections. Earlier this year, in March, the Taiwanese people elected Ma Ying-jeou as the new President of Taiwan. This means that the KMT now have a majority in both the executive and legislative branches of Taiwan’s government. The political situation in Taiwan is fluid. The people and institutions of government are continuing to adapt to the change in leadership of the executive and Presidential branches of government.
The relationship with the mainland remains a major domestic political issue for Taiwan. Some members of the DPP favour a declaration of de jure independence by Taiwan, but Pesident Chen maintained his pledge not to take this step during his term in office. The election of Ma Ying-jeou as Taiwan’s new President has already seen an improvement in cross-Strait relations. top of page
Following the 2001 recession, and the impact of SARS in 2003, Taiwan’s economy has begun to bounce back, with real GDP growth reaching 5.07% year on year in the second quarter of 2007. Taiwan’s economic growth has been driven by its export performance. It has one of the highest foreign exchange reserves in the world. Unemployment, a troubled financial sector, and deflation have previously been problems, but there have been significant signs of improvement over the past year or two. The unemployment rate is the lowest it has been since 2001, sitting below 4%. WTO accession is starting to result in some efficiency gains to the economy. GDP growth is forecast to continue around 4.58% percent for 2007.
Longer term, Taiwan is going to have to cope with the continuing exodus of its manufacturing sector to the mainland (and elsewhere), as increasing integration presents both challenges and opportunities. While high-tech manufacturing has been Taiwan’s strength, Taiwan’s future prosperity is likely to be linked to the development of its services industries. Major reforms of the services sector will be required to allow Taiwan to become an efficient service-based economy. The government has placed great emphasis on the transformation of Taiwan into a "green silicon island" over the next six years (based on high-tech/new economy sectors). Increased investment in tourism, education, research and development and infrastructure including IT infrastructure is envisaged. top of page
Taiwan's external relations can be divided into four areas of activity: managing the relationship with the mainland; competing for influence with the mainland; developing the closest possible relationship with the United States; and developing as good as possible a relationship with the rest of the world within the constraints of the one China policy (adopted by all but the 23 countries which recognise the Republic of China).
Relations with the mainland deteriorated under Lee Teng-hui’s presidency and stayed tense during Chen Shui-bian’s terms in office. Chen’s proposals for a re-engineered constitution, and rhetoric used during the 2004 electoral campaigns raised tensions across the Strait. Chinese missile and other force levels have increased. Taiwan estimates that China has over 700 ballistic missiles located in neighbouring Fujian Province. President-elect Ma Ying-jeou has proposed several measures aimed at improving cross-Strait relations. These include a desire to improve dialogue with China, improving cross-Straits air links, as well as opening up to tourism from the mainland and reducing constraints on cross-straits investment The improved cross-Strait environment since Ma Ying-jeou’s election was demonstrated by the historic meeting in early April, between Taiwan’s Vice-President elect (Vincent Siew) and Chinese President Hu Jintao.
Taiwan and China continue to compete for influence throughout the world. This competition is strong in the South Pacific. Nauru switched diplomatic allegiance to Beijing in July 2002 and then back to Taiwan in May 2005. Kiribati recognised Taiwan in November 2003. Vanuatu’s recognition of Beijing hung in the balance in September/October 2004, but following a change in administration, the island nation continued to recognise Beijing. Kiribati, the Marshall Islands, the Solomon Islands, Nauru, Palau and Tuvalu are among the 23 countries that officially recognise the Republic of China. top of page
New Zealand does not have diplomatic relations with Taiwan. In the absence of diplomatic relations the Wellington Regional Chamber of Commerce operates the New Zealand Commerce and Industry Office in Taipei.
The Safetravel website provides a travel advisory for travellers to Taiwan [external link].
