Political Standoff Threatens Taiwan's Crucial Trade Ties With China

Venerated credit rating firm Moody’s Investors Service sounded a warning this week about Taiwan because its biggest trading partner China officially killed dialogue last month. Talks between the political rivals of 70 years were zombie-like even before that as China tried in vain to make Taiwan accept its condition that both negotiate as parts of one country. Moody’s isn’t threatening to lower Taiwan’s credit rating of “Aa3 stable” at the moment but says silent treatment between the two sides will eventually hurt the export-reliant island’s trade. The rating now, however, is based partly on Taiwan’s “competitive economy” in spite of “geopolitical risk related to its relationship with China with periodic tensions.”