Geography of Taiwan its narrowest. Part of the continental shelf, the Strait is no more than deep, and has become a land bridge during glacial periods. To the south, the island of Taiwan is separated from the Philippine island of Luzon by the -wide Luzon Strait. The South China Sea lies to the southwest, the East China Sea to the north, and the Philippine Sea to the east. Smaller islands of the archipelago include the Penghu islands in the Taiwan Strait west of the main island, with an area of , the tiny islet of Xiaoliuqiu off the southwest coast, and Orchid Island
Economy of Taiwan new economic landscape, and as an island economy with lack of natural resources and comparatively lower domestic aggregate demand, Taiwan's highly educated human resources would contribute greatly to Value added Innovation management for expanding Taiwan's international trade. Taiwan has transformed itself from a recipient of U.S. aid in the 1950s and early 1960s to an aid donor and major foreign investor, with investments primarily centered in Asia. Private Taiwanese investment in mainland China is estimated to total in excess of US$150 billion, and official tallies cite Taiwan as having invested a comparable amount in Southeast Asia. Taiwan has historically benefited