Taiwan Province has developed gradually by relying on the capitalist export-oriented economic system, mainly for the export of integrated circuits and computer parts.
Strongly encouraging manufacturers to invest in high-tech industries such as integrated circuits and computers, high-tech industries that consume less energy, pollute less, and have high added value have replaced traditional industries, becoming Taiwan's important economic lifeline and playing an important role in the global industrial chain.
The authorities are gradually reducing their intervention in investment and foreign trade, and some large state-owned banks and enterprises have been privatized. International trade is the lifeblood of Taiwan's economy, with mainland China being Taiwan's largest trading partner and the top region for import and export trade, followed by the United States and Japan. Unlike neighboring South Korea and Japan, Taiwan's economy is dominated by small and medium-sized enterprises rather than large conglomerates.
Taiwan's electronics and information industry is a major player in the global industrial chain, with most of the world's computer electronic components produced in Taiwan. High-tech industries have replaced labor-intensive industries, and the share of agriculture in GDP has dropped from 35% in 1952 to 2%, while the combined ratio of services and high-tech industries is more than half.
Extended information:
The Kuomintang (KMT) government's initial relocation to Taiwan was marked by the adoption of a moderately intrusive planned economic system In agriculture, it supported the dual-track approach of smallholder and capitalist agriculture, and implemented land reform policies to increase agricultural production. On the industrial front, the development of labor-intensive light industry began in the mid-1950s, and private enterprises, mainly in the textile industry, were fostered.
In the 1950s, developed countries shifted their labor-intensive industries out of Taiwan, and the authorities adopted a policy of encouraging exports in order to attract foreign investment, which drove production and made Taiwan a processing base for the U.S. and Japan, transforming it from an agricultural society to an industrial one, and creating an economic miracle for Taiwan that caught the world's attention. 1970s, under the "Ten Major Construction Projects" of Chiang Ching-kuo, the petrochemical industry and heavy industry were developed.
In the 1970s, Chiang Ching-kuo promoted the "Ten Major Construction Projects" to lay a good foundation for the petrochemical industry and heavy industry.
After the 1980s, Taiwan relaxed its import and export and investment restrictions. Currently, the authorities are actively promoting industrial restructuring and upgrading, focusing on the development of tourism, medical care, biotechnology, green energy, culture and creativity, fine agriculture, six emerging industries and ten major service industries.
Baidu Encyclopedia-Taiwan