A month before his official inauguration, Donald Trump is already tossing diplomatic grenades in China’s direction. It is a sign of things to come. 2017 is shaping up to be a highly eventful, taut and precarious year for China-US relations. This is partly due to a simple scheduling coincidence.

2017 will be the first time ever when both the US and the PRC in the same year will usher in new governments. The US will kick things off on January 20th by swearing in Donald Trump as President. China, meanwhile, will undertake its own large political upheaval, its five-yearly change in political leadership, culminating in the 19th Communist Party Congress sometime late in the year. Virtually the entire government hierarchy, from local mayors on up, will be changed in a monumental job-swapping exercise orchestrated by Xi Jinping, China’s president. Read more

Tiawanese yacht makers like Horizon and Bluewater have helped push the country up the ranking of leading boat makers. The problem is that the whole industry has shrunk as a result of the global financial crisis. The FT’s Sarah Mishkin reports from Kaohsiung in southern Taiwan.

And beyond that, you can see New Zealand

Taiwan has sealed an important free trade agreement with New Zealand – the two countries have no formal diplomatic relationship. It’s a big precedent for an island that almost no nation formally recognises.

New Zealand and Taiwan have agreed to start phasing out tariffs under the deal, signed on Wednesday. It will help boost Kiwi food exporters, but its greatest significance is the political boost it gives Taipei, which often finds its political interactions with other nations stifled by Chinese interference. Read more

Since 2009, state-owned telecom China Mobile had been trying to get regulatory approval to buy 12 per cent of Taiwan’s Far EasTone operator, in what was the first agreement by a Chinese group to invest in a Taiwanese one.

The problem: In 2009, Taiwan didn’t let Chinese groups invest in its core telcos. The two had hoped that might change, but it hasn’t. So, as of Thursday, the deal is officially dead – at least until Taiwan liberalises more, says China Mobile. Read more

A televised singing contest from China’s Hunan province is the latest front in the fight between China and Taiwan.

Many Taiwanese TV stations, including some news stations, devoted hours last Friday night to broadcasting the final round of Hunanese show “I Am a Singer”. That has prompted Taiwanese regulators to begin investigating whether any station broke laws covering the broadcast of Chinese programming. Read more

They don’t call them the “Fishing” islands for nothing, it seems. The territory at the centre of the protracted Sino-Japanese-Taiwanese islands dispute is known as Diaoyu in Chinese, which means fishing, and now Beijing is making sure that Chinese citizens get a taste of the islands – just in time for Chinese New Year when fish is usually high on the menu. Read more


With Taiwan’s economy sluggish this year and the stock market underperforming many regional peers, it’s easy to find Taiwan bears – including the Economist, which raised hackles locally by calling the president a “bumbler” (the unfortunate Chinese translation was “dumb egg”).

It’s not so easy to find Taiwan bulls, so a recent upbeat report from Barclays analysts is unusual. Read more

There have been growing concerns in Taiwan that the warming relationship with Beijing is causing self-censorship in the island’s media – so the deal to sell Next Media, which includes the local newspaper Apple Daily, will only fuel the debate further. Read more

Pacific-rim Chile has long looked to the Far East for trade. Now Banco Santander Chile, the country’s second-biggest lender by assets, is sampling some financial dim sum.

The Spanish-owned bank became the first Chilean bank to raise money in China’s bond market by issuing RMB500m ($80m) in two-year renminbi-denominated paper, dubbed “dim sum” bonds. Read more

Amid all the talk about Taiwan and China’s improving relationship, not much thought is given to a third party that could lose out on business — Hong Kong, historically the back door for Taiwan’s business dealings with the mainland.

As Schive Chi, head of the Taiwan stock exchange, points out, his own efforts to get companies to list in Taiwan – plus the recent news that Taiwan can begin clearing renminbi itself - will help the island reclaim a slice of Hong Kong’s pie. Read more

Shares of Taiwanese airlines took off on Tuesday amidst rumours that the US is about to welcome Taiwanese travelers visa-free.

Hilary Clinton is speaking later on Tuesday at a tourism conference in the US, sparking the latest spate of rumours around the long-awaited decision. All in all, it’s been a good year for Taiwan tourismRead more

Wanted: a piece of the action

Governments across Asia have been keen to replicate the success of Macau, the region’s casino hub, where billions have been made from wealthy Chinese gamblers.

Taiwan residents in Matsu, a tiny island that is much closer to mainland China than its parent, have said Yes to gambling. Developers are keen to get started. But given Taiwan’s complicated (to say the least) relationship with mainland China, what are the odds of the plan working? Read more

The purging of Bo Xilai has been the talk of the town in Beijing for the past week, but back in Chongqing, where Bo was the party secretary, it is business as usual.

Or at least, that was the message that Huang Qifan, Chongqing mayor, and Zhang Dejiang, the man who replaced Bo as party secretary in Chongqing, were keen to send to the western Chinese city’s big investors. Read more

Over the past decades, Taiwanese businesses have funneled more than $200bn in direct investment into China, but there have only been $270m worth of Chinese investment into Taiwan.

That discrepancy has been a sticking point for the Taiwan government, which on the one hand wants to attract more investments to show tangible economic benefits from mending fences with China, but on the other hand is wary of any criticism that it is letting the Chinese buy up Taiwan’s prized companies and assets. So this week’s move by the government is a significant move. Read more

Now that Taiwan’s elections are over and a new cabinet has had time to settle in, investors are turning to the question, “What comes next in cross-Strait relations?”

One intriguing possibility emerged on Monday when the China Daily newspaper quoted Guo Shuqing, chairman of the China Securities Regulatory Commission, as saying that Beijing may include Taiwan in its nascent Renminbi Qualified Foreign Institutional Investors programme. Read more

What to expect from Taiwan’s new cabinet as they begin work this week? To judge by media speculation on the island over the past few weeks, anything is possible, from bringing in new capital gains tax, to further opening to Chinese investment.

Sean Chen, the new premier, has already given himself the rather broad goal of bringing wealth and happiness to the Taiwanese people. Fortunately he has also provided some clues as to what that means. Read more

Hon Hai’s Terry Gou has had a lot on his plate lately, between fresh labour problems, having his operations detailed for the first time by Apple’s sustainability report, and campaigning hard for Taiwan president Ma Ying-jeou.

So with at least one of those three resolved when Ma was re-elected to a second term last Saturday, Gou on Sunday took a well-deserved break and hosted Hon Hai’s annual family day for staff in Taiwan, at the Taipei Zoo. What could possibly go wrong? Read more

Investors looking for an immediate stock market bounce from Taiwan president Ma Ying-jeou’s successful re-election might be a bit disappointed on Monday.

The benchmark Taiex index opened up 60 points, or nearly 1 per cent, on Monday morning to reach 7250 points, bucking a broadly down Asian market, but quickly fell back into negative territory. By mid-morning it was down by 60 points. Read more

Taiwan's president, Ma Ying-jeouTaiwan on Tuesday opened the doors a little wider to Chinese money by announcing that Chinese banks and investors will be allowed to take small stakes in Taiwanese banks.

Taiwan’s main financial regulator announced in a statement that, from January 2 onwards, eligible Chinese banks will be able to take up to a 5 per cent stake in a Taiwanese bank, while other non-bank investors will be allowed up to a 10 per cent stake. Read more

Hon Hai’s Terry Gou is not a person who does things in half measures. Part of what made Foxconn the dominant force in electronics contract manufacturing, for example, was a decision Gou made very early to not just be in the assembly business but to take control of as much of the supply chain as possible.

So when Gou publicly declared his support for Taiwan president Ma Ying-jeou, who is seeking re-election in January, he did more than voice his endorsement.  Gou said on Wednesday that he would be giving Hon Hai’s Taiwanese employees in China ‘election holidays’ so they could return to Taiwan to cast their ballot. Read more