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Opinion

Taiwan's post-bubble recovery holds lessons for China

Active monetary and industrial policy played key roles in island's turnaround

| Taiwan
TSMC headquarters in Hsinchu: The manufacturing sector was a key driver of Taiwanese economic growth after the island's market bubble burst.   © Reuters

Paul Cavey, previously Asia macro strategist and managing director at investment company Wellington Management, is the founder of research service East Asia Econ.

Economics really is a dismal science. A reminder of that is the current fixation on finding parallels between China today and Japan in the 1990s.

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