One key risk we advise our clients to consider is political risk. The main risk in this realm is the risk of war between China and Taiwan with the USA getting involved. The chance of this risk becoming reality is declining recently as relations across the Taiwan Straight warm.
Tuesday China and Taiwan signed a trade agreement that will increase the number of direct flights and shipments between the two neighbors. Much of the current improvement in relations started in March when the new Taiwanese President took office with promises of better relations with China. President Ma's Nationalist Party also supports eventual reunification with China, although that does not appear to be on the agenda in the near-term.
Many factories we work with are owned by Taiwanese. The warming in relations is a good thing for them as well.
Just another piece of good news for our business. Happy Election Day!
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