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Taiwan’s economy has a bright future. The island is a global leader in principal industries, such as computer components and telecommunications, and continues to provide an attractive environment for foreign direct investment. Still, Taiwan’s economic growth has slowed since the boom of the 1990s. Encumbered by growing inflation and unemployment, Taiwan faces serious challenges to its continued prosperity. Strict financial regulations are discouraging potentially higher levels of foreign investment. Moreover, China’s recently proposed free trade agreements with Association of Southeast Asian Nations members and the potential U.S.–South Korean free trade agreement pose a risk to Taiwan’s trade relations and thus its continued economic vitality.

The recent election of President Ma Ying-jeou provides an excellent opportunity for Taiwan to address these challenges. What are Taiwan’s plans for economic reform? What are the prospects for and potential benefits of a U.S.-Taiwan free trade area? How do other free trade areas in the Asia Pacific positively or negatively impact Taiwan’s economy? And what lies ahead for cross-Strait economic relations? On June 17, AEI will host a panel discussion to address these and other questions concerning Taiwan’s economic future.