Taiwan is understandably circumspect on China's meteroic rise to an economy the rest of the world cannot ignore. As one of the four Asian Tigers (Taiwan, Korea, Japan, and Singapore) Taiwan had a strong start to China. But given the raw size of China, Taiwan also has much to fear, and how they work with China, given significant political differences is key. Taiwan and China both joined the WTO this year.

It is not surprising therefore that the Taiwanese are also looking for alternatives, and India, as the second largest populated country in the world, is one of those. India, with it's massive amount of computer expertise especially in programing and software may also provide just the synergy that Taiwan needs to balance their manufacturing and chip industries.

Full article is available directly from The Taipei Times Online but a short extract is reproduced here-

In particular, China has had spectacular success in expanding exports and attracting direct foreign investments. In terms of purchasing power parity, China now ranks as the second largest economy in the world, with India trailing at number four.

India's leaders are becoming aware that their economy can move forward more rapidly if they undertake meaningful and aggressive reform. India scores well, for example, in the area of macroeconomic conditions where restrained monetary expansion has brought inflation to a record low of 2.5 percent. China's battle with price instability has seen swings from high inflation in the mid-1990s to its current troubling bout of deflation.