Final answer:
The improvement in Taiwan (PRC) economic relations is notable despite ongoing political tensions, marked by robust trade and investment growth between Taiwan and mainland China. Influential moves like joining the WTO as 'Chinese Taipei' and a government focus on strengthening economic ties have greatly enhanced cross-strait trade.
Step-by-step explanation:
The economic relations between Taiwan (officially the Republic of China, ROC) and the People's Republic of China (PRC) have been showing signs of improvement despite the complex political context underpinning their interactions. Taiwan, while not universally recognized as a sovereign state, manages to engage in significant trade and investments with mainland China. This development has largely been attributed to a practical shift in focus towards economic prosperity over political secession.
In 2008, a pivotal moment came when Taiwan elected a government keen on enhancing economic ties with China, despite nationalist leanings. This was bolstered by Taiwan's accession to the World Trade Organization (WTO) in 2001 as Chinese Taipei, a move that further deepened these economic linkages. The growth in direct trade through such channels has significantly increased the volume of cross-strait trade, showcasing a robust economic relationship that belies the political tensions that still persist.
Taiwan has rapidly transformed its economy from a focus on textiles to becoming a global competitor in electronics and high-end goods. Evidencing its economic vigor, it participates in world-class sporting events like the Olympics, maintaining visibility on the international stage. Taiwan’s prowess in establishing strong trade relations has been a key factor in lifting its standard of living to impressive heights, independent of the diplomatic recognition issues imposed by PRC's 'One China' policy.