Audience, China criticized Taiwan’s last year decision to allow the TWD
to depreciate last year and thus contributing to the Asian Financial Crisis.
An American spokes person Lu Ru Zhi reported that China’s Foreign Ministry
criticized Taiwan’s Trade and Investment delegation for falling into SE Asia’s
mess in an attempt to make profit. Below are this stores details.
China’s Foreign Ministry Zhu Bang Zao said via translator: Taiwan devalued
its currency aggravating the Asian Financial Crisis. Zhu said, last October,
Taiwan suddenly publicly devalued the TWD by 10% directly leading to a sudden
drop in SE Asian stock markets. In fact, Taiwan contributed to the Asian
Financial Crisis in a negative way.
Actually, Taiwan made directive to devalue its currency.After diligently
pouring in 500,000,000 USD had no effect, Taiwan stopped support the TWD.
Zhu Bang Gao’s criticism of Taiwan’s Economic and SE Asian missions is
rather directed at the country’s goals and profits. Taiwanese businessmen
have been making several investment purchases in several SE Asian countries
that have have suddenly decreased in Value. Taiwan has been put in in the
difficult position of supplying loans to SE Asian countries.
China’s Foreign Ministry Spokesperson reaffirmed China’s rejection of any
recognition or contact with Taiwanese officials. Beijing believes Taiwan
is part of China. Without hesitation, Zhu did not mention any countries
by name but seemed to be referring to Malaysia. Taiwan Vice President Lian
Zhan recently visited Malaysia. Taiwan seems determined to break China’s
forced diplomatic isolation. Zhu said other countries should respect China’s
position, so Zhu basically said that Taiwan’s attempts to strengthen relations
with these countries was doomed to fail.
In large part to 83,000,000,000 of foreign exchange reserves and a
health banking system, Taiwan has largely been unaffected by the region’s
current financial storm.However, Taiwan does face he problem of declining
exports in Asia. In addition, some people in Taipei are worried that Taiwan
might not achieve its 6% growth target this year. However, the Taiwan government’
s economic head said that Taiwan’s economic landscape was very good.
China refuses to allow the RMB to depreciate and points out that this decision
shows the country’s responsible manner. Most analysts worry that if China
devalued its currency, other Asian countries would follow one after another
thus making the regions economic situation even more unstable.