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Economy

Taiwan and China don't let politics stand in the way of deals

TSMC plans to start making advanced 16-nanometer chips in Nanjing, China, in the second half of 2018. (Photo courtesy of TSMC)

TAIPEI The inauguration of Tsai Ing-wen as Taiwan's president is likely to highlight the political gulf between the self-governing island and China. It may also, ironically, bring into sharper focus their deepening economic ties across the Taiwan Strait.

China is Taiwan's biggest trade partner, accounting for 40% of Taiwan's exports. Bilateral trade totals $160 billion annually. But the development of a technology supply chain within China and the mainland's economic slowdown have caused a worrying period of contraction for the Taiwanese economy.

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