The Kuomintang is no longer an organized force capable of resisting change or coming back into power. And Soong's party, though it may grow to become the major opposition party, is not all put together yet. Not everyone agrees. Wei Wou, dean of the College of International Studies at Tamkang University and a senior KMT member, says Taiwan's problems will only intensify in the months ahead. Economically, Chen faces a sea of troubles.
Analysts say that Taiwan's economy is segmented into two parts.
One consists largely of a highly efficient, globally competitive electronics sector that is the envy of all Asia. Indeed, only the huge growth in electronics has kept Taiwan chugging along. But while high-technology companies continue to power ahead, traditional industries such as banking and real estate are sinking ever deeper into trouble. That, Wei adds, would allow the president to concentrate better on his domestic challenges. For the moment, China has refrained from commenting on the latest developments in Taiwan.