TAIPEI, May 31 (Reuters) – The threat of military conflict
between Taipei and Beijing has faded, transforming the appeal
of Taiwan for foreign investors, but policy risk and the threat
of polarised local politics could cool the investment climate.

Following is a summary of key Taiwan risks to watch:

* INTEREST RATE POLICY AND CAPITAL CONTROLS

Taiwan’s central bank said in March it was ending its loose
monetary policy due to signs a deep recession was over, but
economists expect interest rates to stay relatively low for a
few months more unless the U.S. Fed acts sooner or inflation
spikes persistently. Faced with growing discontent over rising
housing prices and fears of a real estate bubble in an election
year, the central bank may move to curb property prices and
speculation.

TAIPEI (Reuters) – The threat of military conflict between Taipei and Beijing has faded, transforming the appeal of Taiwan for foreign investors, but they still have to contend with policy risk and the island’s polarized politics.

Following is a summary of key Taiwan risks to watch:

* INTEREST RATE POLICY AND CAPITAL CONTROLS

Taiwan’s central bank said in March it was ending its loose monetary policy due to signs a deep recession was over, but economists expect rates to stay relatively low for a few months more unless the U.S. Fed acts sooner or inflation spikes for several months. Faced with growing discontent over rising housing prices and fears of a real estate bubble in an election year, the central bank may move to curb property prices and speculation.

TAIPEI, May 3 (Reuters) – The threat of military conflict
between Taipei and Beijing has faded, transforming the appeal
of Taiwan for foreign investors, but they still have to contend
with policy risk and the island’s polarised politics.

Following is a summary of key Taiwan risks to watch:

* INTEREST RATE POLICY AND CAPITAL CONTROLS

Taiwan’s central bank said in March it was ending its loose
monetary policy due to signs a deep recession was over, but
economists expect rates to stay relatively low for a few months
more unless the U.S. Fed acts sooner or inflation spikes for
several months. Faced with growing discontent over rising
housing prices and fears of a real estate bubble in an election
year, the central bank may move to curb property prices and
speculation.

TAIPEI, April 26 (Reuters) – Huang Cheng-chan buys about
100 Chinese yuan ($14.6) every month from his bank in Taipei
but has no plans to visit China. He plans to profit instead.

Huang and countless other Taiwan day traders known for
their adventurism are buying the Chinese currency as an
investment despite caution warnings because they expect it to
appreciate any day, bank sources say.

TAIPEI (Reuters) – Taiwan urgently needs a trade pact with China to save its $390 billion economy from pariah status, President Ma Ying-jeou said on Sunday in a historic debate as the opposition accused him of ignoring public fears.

The debate, a new step in Taiwan’s democracy, is expected to sway public opinion towards an economic cooperation framework agreement (ECFA) set to be signed with China in June. It featured biting dialogue, sideways glances and animated hand gestures.

TAIPEI (Reuters) – Taiwan is scrambling to raise its birthrate, among the world’s lowest, before the sinking number of newborns threatens productivity for its export-driven $390 billion economy.

Taiwan fears it will lack the manpower or brainpower in 10 to 15 years to keep up with industrialized Asian peers and the blooming economies of some Southeast Asian countries.

TAIPEI, April 1 (Reuters) – The threat of military conflict
between Taipei and Beijing has been fading, but investors in
Taiwan still face a range of economic and political risks.

Following is a summary of key Taiwan risks to watch:

* INTEREST RATE POLICY AND CAPITAL CONTROLS

Taiwan’s central bank said in March it had ended its loose
monetary policy due to tentative signs of economic recovery
after a deep recession, but economists expect rates to stay
relatively low at least through the mid-year unless the U.S.
Fed acts sooner or inflation spikes for several months. But
faced with growing discontent over rising housing prices and
fears of a real estate bubble in an election year, the central
bank may move to curb prices and speculation.

TAIPEI (Reuters) – Taiwan has leveraged its goal of a landmark trade deal with China to open talks with Japan, the United States and other powers on free trade deals expected to boost the long-isolated island economy, officials said on Friday.

Appealing to countries that have been barred by Taiwan’s political rival China from signing FTAs with the island, Taiwan has hinted to wary foreign governments that Beijing is unlikely to protest once the two sides sign their own trade deal.

TAIPEI (Reuters) – Taiwan said on Wednesday it would use countries in Africa to get its first carbon credits for international trade, a move seen as part of the island’s long-term bid to participate in the United Nations.

Barred from U.N. membership by China, Taiwan plans to obtain carbon credits by setting up solar and biomass companies in cash-strapped African countries, the island’s environmental protection agency said ahead of a summit in Taipei with climate leaders from eight nations.