Soros sent a quest to Fusang, but he didn't take any serious action.

Because Fusang's economic strength is far from comparable to the four Asian tigers.

Even after experiencing the Tokyo real estate bubble incident and the economy has not recovered, it still ranks as the world's second largest economy, with nearly one trillion US dollars in foreign exchange reserves.

Although Soros is now strong and powerful, he is still no match for Fusang.

So he just flicked a shot in Fusang and shorted a piece of the stock market in Fusang.

And his real goal is Taiwan, sandwiched between mainland China and Fusang.

Taiwan's economic development mainly relies on the United States. In the 1950s, the United States began to assist Taiwan in construction, just as it assisted Fuso, Britain, France and Germany.

Taiwan is also self-reliant and has proposed phased construction plans many times, just like the five-year plan in mainland China, but Taiwan has a four-year plan.

In 1960, the Executive Yuan of Taiwan promulgated the "Investment Regulations on Rewards and Punishment", using tax reductions as the main means to attract foreign investment and promote industrial development. This move effectively drove the takeoff of Taiwan's economy.

By the 1970s, the annual investment increase rate was 15%, of which private investment accounted for half. It can be seen that the enthusiasm of people to invest was mobilized.

In the 1960s, the outbreak of the South Vietnam War injected a shot in a strong shot in Taiwan's economic development. Just as the Korean War caused Fusang to rise rapidly since the war, Taiwan also made great profits in the South Vietnam War.

Many of the United States' military supplies are processed and produced by Taiwan, and many American warships are also supplied and maintained in Taiwan. American military aircraft also take off and land at Taiwan's airports.

The arrival of the US military has provided Taiwan with "protection" in disguise, allowing Taiwan to develop its economy with confidence and boldness. Coupled with the business opportunities brought by the war, it has driven a large number of factory construction and population employment, and has also made Taiwan prosper rapidly.

By the 1980s, Taiwan's economy transformed from labor-intensive to technology-intensive industries.

With the support of the United States, Taiwan's electronics industry has developed rapidly. General Instruments, Texas Instruments, Philips, Hitachi Electronics, Mitsubishi and others have set up factories in Taiwan. Taiwan itself has also founded companies such as TSMC, Lianhua Electronics, Maoxi, Acer, etc.

Because of the rapid technological upgrading, it just happened to be on the fast track of the development of the electronics industry. Therefore, after the end of the South Vietnam War, Taiwan's economy did not decline, but developed more rapidly than before, and even became one of the centers of global electronics industry production.

In 1979, Taiwan's per capita income was 1,900 US dollars. By 1988, Taiwan's per capita income had surged to 6,200 US dollars. By 1996, Taiwan's per capita income had reached 1,100 US dollars.

Because the economy has an average high growth rate of 9% for 40 consecutive years, it was called the "Taiwan Miracle" at that time.

The rapid development of Taiwan's economy has caused the Taiwan dollar exchange rate to rise year by year. In addition, Taiwan is implementing free trade, which creates opportunities for the influx of hot money.

Because of confidence in Taiwan's development prospects, a large amount of foreign capital poured into Taiwan, which also caused the Taiwan stock and real estate markets to rise.

In 1986, the average house price in Taipei was NT$67,000 per square meter, and by 1990, it had risen to NT$360,000. In four years, it increased by nearly six times.

In terms of the stock market, in 1987, the Taiwan stock index was only 1,000 points. By 1990, the Taiwan stock index had surged to 12,000 points. In three years, it had doubled.

The stock market surged, which made Taiwan's stock trading go crazy. With less than 15 million people, six million people opened accounts in securities banks. In addition to children, almost one out of every two Taiwanese was trading stocks. It can be seen that the stock market was crazy at that time.

...

Soros sniped Taiwan because he was attracted by Taiwan’s economic accumulation over the past 40 years.

In his opinion, this is a big piece of fat meat.

Moreover, Taiwan is not like Fusang. Fusang has strong economic strength. Soros attacks Fusang and cannot eat meat, which may cause a broken tooth. However, although Taiwan's economy is developing rapidly, its total economic volume is actually not large.

Moreover, after Fuso passed the Tokyo real estate bubble, the moisture in the economy has basically been drained. Although Taiwan suffered a stock market crash in 1990s, overall, Taiwan's economy is still very well-behaved.

Especially in recent years, Taiwan's industry has been shifting to Southeast Asia and the mainland. Taiwan's industrial investment is declining year by year.

Taiwanese companies take orders in Taiwan and produce in mainland China. Although GDP is still included in Taiwan, their overseas income is rarely transferred back to Taiwan.

Therefore, the GDP on Taiwan’s paper seems to be prosperous, but it is actually just a fool. If we eliminate the overseas part, Taiwan’s GDP will not be negative, but at least it is much lower than the current 10% growth rate.

It can be said that Taiwan's economy has great shortcomings.

Soros also took a fancy to its weaknesses and launched an attack on it.

...

Soros' sniping method is the same as before, mainly selling the Taiwan dollar and shorting the stock market.

Because he had just won the four Asian tigers, he visited Fusang and scared the Japanese yen to a great decline. It can be said that he was invincible in East Asia.

In this case, Taiwanese people naturally tremble when facing Soros.

In order to win Taiwan, Soros also made a big move to mobilize funds.

The funds he mobilized were as high as 200 billion US dollars, and this time it increased to 300 billion US dollars.

In 1996, Taiwan's foreign exchange reserves were only 96 billion US dollars, twice the difference.

Therefore, under Soros' sniping, Taiwan's foreign exchange reserves were consumed at a rapid pace, and their lives were hanging on the line.

At the same time, Soros used international media to expose the mask of Taiwan's rapid economic growth to undermine the confidence of the Taiwanese people.

With a two-pronged approach, the Taiwan dollar exchange rate began to depreciate. It dropped from 27:8 to 1 to 40 to 1, down nearly 13%.

The depreciation of the exchange rate and the rise in interest rates have caused the Taiwan stock market and the real estate market to fall. The Taiwan stock index fell from 8,000 points to 6,000 points, with a drop of 25%. Taiwan's real estate market fell from a maximum of 550,000 per square meter to 430,000 per square meter.

Many people's savings over the years have evaporated out of thin air. In 1996 alone, nearly 200,000 people filed for personal bankruptcy.

The economic recession of Southeast Asian countries also seriously affected Taiwan's exports, causing Taiwan's exports to fall by 10% that year, and the actual growth rate of business and labor exports fell by 6%.

However, overall, Taiwan's economic recession results are still much stronger than the four Asian tigers. This is also due to its early economic transformation.

The electronics industry is now in a period of rapid development. With this industry as the foundation, although Taiwan's exports are affected, they have little impact.

Unlike Southeast Asian countries, exports are mostly low-value-added agricultural products, and light industrial products are the main ones, which are too substitutable. Once its exports drop, they will be immediately snatched away by other countries, and it is difficult to borrow exports to recover their health.
Chapter completed!