Taiwan taking the WTO by the horns

After China’s expected entry to the World Trade Organization (WTO) in the first half of 2001, Taiwan will likely follow. Despite some expected gains, entry to the WTO will inflict short-term economic pains in Taiwan, because the island will have to speed up structural adjustments.  An investment hollow out from Taiwan to China will follow, as Taiwanese firms struggle to survive.  This will lead to growth leakage and hurt employment in Taiwan in the short-term.