Breakingviews - Taiwan will widen U.S.-China schism in 2020

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Breakingviews - Taiwan will widen U.S.-China schism in 2020
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(Reuters Breakingviews) - Keep a close eye on Taiwan in 2020. Its significance i...

A military honour guard holds a Taiwanese national flag as he attending flag-raising ceremony at Chiang Kai-shek Memorial Hall, in Taipei, Taiwan March 16, 2018. REUTERS/Tyrone Siu - RC1F31B52FB0

The $560 billion economy is an unlikely beneficiary from U.S.-China tension. While other Asian export powerhouses grapple with slowing demand, Taiwan recently nudged up its GDP growth forecast for 2020, to 2.7%. Rising domestic investment should help, boosted by local manufacturers moving operations back home from mainland China.

Against this backdrop is growing American antagonism towards the People’s Republic, which considers self-governed Taiwan a renegade province. President Donald Trump signed a veto-proof bill effectively supporting anti-government protesters in Hong Kong. Soon after, the U.S. House of Representatives roundly passed a bill that condemns the crackdown on Chinese Muslims in Xinjiang.

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