Closer Straits ties won't squeeze neighbors: Experts

Increased economic activity between the mainland and Taiwan is the result of "pure market activity" and does not exclude other economies, analysts say.

They made the observation after South Korean newspaper Chosun Ilbo said on Monday that South Korean companies had suffered a "hard and severe blow" because of the so-called "Chaiwan economy (China+Taiwan)", forming out of cooperation between Taiwan tech companies and mainland manufacturers.

Bloomberg reported on Tuesday that mainland TV makers were about to buy $4.4 billion of flat-panel displays and other components from Taiwan, double what was expected.