United States Department of State

Taiwan United States Department of State

Strategically located between North and Southeast Asia, Taiwan is a critical hub for regional and global trade and investment. Expanded cross-Strait trade with mainland China through the Economic Cooperation Framework Agreement (ECFA) signed in 2010 improved Taiwan's investment climate by reducing some tariffs and other commercial barriers. In 2014, inward foreign direct investment (FDI) increased by 17.0 percent after posting a decline of 11.2 percent in 2013. Taiwan's science and industrial parks, export processing zones, and free trade zones aim to expand trade and investment opportunities by granting tax incentives, tariff exemptions, low-interest loans, and other favorable terms. Taiwan's economic performance over the past year improved as a result of a rise in domestic consumption and increased demand from the United States. GDP growth in 2014 was 3.74 percent, up from 2.23 percent in 2013. In the 2015 Doing Business report, the World Bank ranked Taiwan 19th out of 189 economies for Ease of Doing Business, down from 16th position in 2014.