Abstract
The Republic of China (Taiwan) is a developed nation with a strong industrial base and steady progress toward self-sufficiency through technology. Taiwan's gross national product (GNP) is growing at a record rate, and Taiwan has become a leading exporter. Major exports include clothing, plywood, steel, and cotton fabric. To counter the inflationary pressure brought by a huge surplus of US dollars, Taiwan's government has cut export levels and raised import levels. It also has sold treasury bills, increased the amount of foreign exchange local and foreign bank branches may hold, and induced payment of long-term dollar debts with new local currency loans. Trade with India is down, but 2-way trade missions and relaxed visa formalities could produce a more favorable environment. Expansion could be promoted by diversifying Indian imports from Taiwan, maintaining continuity in Taiwan's imports, and indentifying services to trade.