Article: Trilateral Economic Relations among Taiwan, China, and the United States.

Since the mid-1980s, Taiwan has engaged in large-scale investment in response to a strong New Taiwan dollar, the high cost of labor and land, environmental controversies, and growing trade friction with the United States. The huge trade deficit between Taiwan and the United States made the U.S. government require Taiwan's authorities to appreciate the exchange rate of the New Taiwan dollar from 39.85 per U.S. dollar in 1985 to 28.55 per U.S. dollar by the end of 1987, an increase of almost 40 percent in just two years. From 1986 to 1995, the unit labor cost increased two to three times in most labor-intensive industries such as apparel, textiles, wood and bamboo, and ...

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