Nevertheless, China is clearly not intending to alter her attitude towards Taiwan in any fundamental way. Chinese protests were loud when the US allowed President Lee to visit in 1995 and China will surely block Taiwanese efforts to recover its seat at the United Nations. In contrast to its Chinese neighbour, Taiwan has enjoyed prosperity with high incomes and a healthy trade surplus. This wealth is based on a manufacturing industry originally founded on textiles, but more recently on high-tech electronic goods. As much as 40 per cent of the economy, however, is reckoned to be in illegal trading, and a black market lending system supports many small to medium industrial concerns.
Agriculture is highly productive, with rice, sugar, tea and fruit as the leading crops.
The economy suffers from the drainage of its wealth as a result of investment in China. This is, however, partly offset by the sudden dramatic increase in trade between the two countries, despite an official Chinese boycott.