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Dire Straits. Taiwan-Mainland ties warm amid economic deep freeze

The Taiwanese economy is in serious strife, which could trigger further engagement with the Mainland. The island’s fourth quarter GDP plunged an unprecedented 8.4% and further slides are possible this year as the island’s manufacturing-based economy suffers amid the global economic slump. Direct aviation links, enhanced in Dec-08 with the commencement of weekday cross-Strait services, are expected to strengthen as the economic storm rages.

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