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Sign an investment treaty with the US, economist says

Economist Derek Scissors is urging Taiwan to diversify its international investment portfolio and seek a bilateral investment treaty with the US.

Scissors, a research fellow with the Asian Studies Center at the Washington-based Heritage Foundation, says that the US and Taiwan have an extraordinarily intense trading relationship.

With a population of 23 million, Taiwan is the US’ ninth-largest trading partner. However, excluding the microstates, it is actually the US’ third-largest trading nation on a “per person” basis.

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‘Journal’ editorial warns Obama not to appease China by withholding jets

As China intensifies its campaign to stop US President Barack Obama from selling F-16C/D aircraft to Taiwan, some friends of Taipei are hitting back.

The Wall Street Journal has published an editorial on its Web site, warning Obama not to appease Beijing.

It says that Beijing is “lobbying furiously” against the F-16 deal and that if the US administration gives in “China will conclude it can intimidate the US from assisting its allies.”

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Newsflash

Although the Ministry of National Defense and some Chinese Nationalist Party (KMT) legislators played down the significance of an incident involving two Chinese fighter aircraft in the Taiwan Strait late last month, analysts say the matter is more than simply routine.

Confirming on Monday media reports that one of two Chinese Sukhoi-27 fighter aircraft shadowing a US U-2 spy plane had crossed the median line in the Taiwan Strait on June 29, ministry officials maintained this was an isolated incident and did not regard it as provocative.

The Chinese aircraft are believed to have been from the 40th Fighter Regiment, 14th Fighter Division at Nanchang-Xiangtang Air Base in Jiangxi Province.