BY RICHARD R. VUYLSTEKE

In late September this year, during opening remarks at an economic forum sponsored by UBS and the Taiwan Institute of Economic Research, TIER president David Hong made passing reference to Taiwan's gray economy. He mentioned that roughly 30% of the domestic economy was "underground," meaning that nearly a third of local business transactions escape taxation, avoid regulatory controls, contribute substantially to unfair competition, and erode public confidence in fair government.

BY LUCIEN CROWDER

CROSS-STRAIT RELATIONS
CHINA CELEBRATES TAIWAN'S 'RETURN'
CHINESE TOURISM OFFICIAL VISITS

DOMESTIC NEWS
NCC organic law finally passes
LEGISLATURE seen as underperforming
 

INTERNATIONAL
PRESIDENT CHEN VISITS NON-ALLIES
SENEGAL BOLTS
 

BUSINESS
FSC OFFICIAL RESIGNS
CARREFOUR AND TESCO STRIKE A DEAL
Supermarket giants Carrefour and Tesco have announced a deal that will, if approved PENNSYLVANIA opens a TRADE OFFICE
BUSINESS ALLIANCE FORUM FOCUSES ON NANOTECH

With its timing midway in AmCham's advocacy cycle that begins and ends with publication of the Taiwan White Paper each May, the November "Taiwan Investment Report" issue of Taiwan Business TOPICS is an excellent opportunity to review the progress of the current year's White Paper issues.

The local economy has gone through some rough patches this year. But there's reason to think there are better times ahead - not just in 2006, but well into the future.

BY LUCIEN CROWDER