Taiwan plots regional growth as ardour for whisky persists

But Taiwanese policy-makers could certainly feel entitled to a stiff drink as they continue to work through how best to ensure the Republic of China, to give their island of about 23 million people its official name, is not cut out of key international free trade agreements. This challenge does not become any easier as the giant People's Republic of China, just across the Taiwan Strait, becomes an evermore powerful economic force.

The one thing which is crystal clear from discussions with Taiwan's government and its think-tanks is that, when it comes to the future of their economy, adaptability and innovation will be crucial to continued prosperity in the years and decades ahead, as the shadow of the giant across the strait looms ever larger.

Ms Shih tells the journalists it is imperative for Taiwan to join the Trans-Pacific Partnership (TPP) and Regional Comprehensive Economic Partnership (RCEP), two key free-trade groupings.

However, this might well be much more difficult than it sounds, with Taiwan's huge neighbour holding so much sway in international affairs. Taiwan was last year able to sign bilateral economic cooperation agreements with New Zealand and Singapore, not asking permission from its neighbour but keeping China informed as it moved ahead with President Ma Ying-jeou's broader "viable diplomacy" policy.

President Ma has aimed to promote the peaceful and stable development of cross-strait ties with China, a policy which has proved very unpopular with some in Taiwan and prompted student protests early this year. His policy is based on the 1992 consensus reached between those on either side of the strait of "one China, with respective interpretations". These respective interpretations effectively mean that those on each side of the Taiwan Strait believe that they are the real China. The status quo is summed up by Taiwan's government as "no unification, no independence and no use of force". It is an extremely delicate balance.

Chu-Chia Steve Lin, first deputy minister of the mainland affairs council of Taiwan's executive yuan, says of the 1992 consensus: "It says we both agree we are one China. It means when we say China we mean Republic of China. When they say China they mean...PRC."

Among the measures being taken by Taiwan in its efforts to achieve tariff-free trading with many other countries is the creation of Free Economic Pilot Zones.

These are aimed at helping liberalise trade, as Taiwan aims to get ready for any opportunity to join the TPP and RCEP free trade agreements, and at boosting the economy's competitiveness.

At the Pingtung Agricultural Biotechnology Park, which has been designated as one of the Free Economic Pilot Zones as key enabling legislation awaits ratification in Taiwan's parliament, they have transgenically altered the colour of fish and made them glow in the dark.

They started with small fish. And now they have produced pink, glowing angel fish.

This work is a fine example of the kind of innovation which will be needed if Taiwan is to continue to prosper.

Taiwan faces strong competition in key sectors such as electronics from the likes of South Korea and the unenviable challenge of striking the balance between cooperating to some extent with China on economic matters while protecting its own position and keeping its own people happy.

However, Taiwan, which has often found itself relatively isolated over the decades, has consistently proved able to navigate its economy in a way which has ensured prosperity.

Many people will remember the old Made in Taiwan tag, on the likes of low-cost toys in the 1970s.

Nowadays, the country is at the cutting edge of electronics manufacturing, with particular specialism in the likes of semi-conductors and display panels. Taiwan's gross domestic product is expected to receive a boost over the second half of this year from the shipping of components for Apple's iPhone 6. Growth this year is projected at 3.4 per cent but the hope at the ministry of economic affairs is that it could be in the range of 3.5 per cent to four per cent.

Optimism in the future is evident in the giant Taoyuan Aerotropolis project at the international airport, near Taipei. Investment of more than $16 billion is planned, which would make this Taiwan's biggest infrastructure project since the late-1970s. A 23-square kilometre urban development, featuring smart city technology, is part of this plan.

Companies based in Taiwan may not figure prominently as inward investors in Scotland these days. In the 1990s, Taiwanese electronics companies Lite-On and Chunghwa Picture Tubes opened manufacturing plants at Mossend in Lanarkshire but later exited.

However, there are some major Taiwanese companies which are household names in Scotland and many other parts of the world, such as computer manufacturers Acer and Asus.

Taiwan is Scotland's 48th-­largest export destination, according to trade promotion and inward investment agency Scottish Development International.

SDI highlights key industries for Scottish trade in that part of the world as information and communications technology, renewable energy, life sciences, financial services, food and drink, and textiles.

Asked about what Scottish exports are in demand in Taiwan, Ms Shih highlights an appetite for quality among the nation's consumers.

On the subject of Scotch, she says: "I drink whisky. I love whisky. I understand we are a very important export market for single-malt whisky."

She is right. Taiwan is a top-three export market for single-malt Scotch.

Explaining the demand for Scotch, she says: "People in Taiwan - they are very hospitable. That is why we have become an important market for a lot of liquors, and wine.

"These people, they are willing to pay a little bit more for the good quality. That is why, if you have got products with good quality, you still find a market in Taiwan."

She notes that whisky is way ahead of brandy in the Taiwanese market.

Ms Shih says: "In the past, it is brandy but now it is whisky. People think whisky is more healthy - there is less sugar."