China and Taiwan are getting cosier. It seems Taiwan accepts the declining capacity of America and Japan to support it....and how right that is!
A new trade pact reached on Tuesday will take effect in 40 days. Included is an increase in direct cross-strait flights, direct shipping and postal links, and increased co-operation on food safety in the wake of the recent melamine contaminations. Over five million Taiwanese travel to China each year and the agreements are expected to reduce travel time and costs. This is a very significant move...The Taiwanese Government knows it will meet with opposition at home so it must see significant benefits in it.
China is accelerating its strategy to out pace the U.S. and will use its huge foreign currency reserves to keep its growth on track....(altho' Western pundits are all gloom and doom) As I have said before....don't get bearish on ASX small near term commodity producers..the rulers are being run over a few.