Editor’s Note: Research Editor Hannah Hsu spent New Year’s in Taiwan. Although we’ve analyzed Taiwan’s investment opportunities in the past, what follows is a glimpse of everyday life in the island.

Taiwan Travelogue

By Hannah Hsu

Taipei, Taiwan–At first glance the city of Taipei resembles any other major city–well, aside from the Chinese writing. But there’s more to the largest island of the Republic of China than meets the eye.

I traveled from south the northern tip of Taipei City to Pingtung City, gaining insights from the locals along the way.

Transportation

Traveling from the north to the south of Taiwan takes four or five hours on a conventional train. But thanks to Taiwan’s High Speed Rail, or bullet train, I traveled deep into the south in just an hour.

A ticket on the bullet train runs about USD30–much less than a domestic flight, which costs roughly USD70. Although a plane ride shaves another 30 minutes, dealing with airport traffic isn’t worth it to most.

One local told me that since the arrival of the bullet train, hardly anyone flies domestically–in fact, there are only a few flights a week. Although people prefer the bullet train to airplanes, the high-speed rail is still unable to attract enough passengers to make money, a sign that the global crisis still weighs on places on in Asia like Taiwan.

In Washington, DC and its exurbs, most people own a car. You sometimes see people on motorcycles but certainly not mopeds. In Taiwan, pretty much everyone has a moped. It is the most common medium of transportation. Cost is certainly one consideration, but mobility is equally important; riders easily weave in and out of traffic and onto the sidewalk and even make u-turns in the middle of the street–all maneuvers a bulky car can’t do.

Life in Taiwan

Mopeds are extremely popular, but I can see and feel their impact on air quality. The pollution hurts; at times it feels as though I’m standing in front of a bus’ exhaust pipe. This is partly why so many people wear surgical masks. These accessories are so prevalent that you can purchase personalized fabric masks with designs and popular characters like Sesame Street’s Elmo.

In the US, the sight of surgical masks raises deep concerns about a contagious health issue, but in Taiwan it’s as common as wearing a scarf in the winter. And in some cases it’s rude not to wear a mask. A college friend, who teaches English in Taipei, noted that students with even the slightest cough wear masks as a sign of politeness to their classmates and instructors.

After arriving in Pingtung County, a rural area that’s less crowded than Taipei, I ate at a well-known dumpling vendor that has operated for over 60 years. Jetlagged at 4:00 am, I took a stroll down the street to this restaurant and found a family of four hard at work making the most popular dumplings in town. These delicacies go for just 15 cents each, so I was able to eat until I was full for less than USD2. To my surprise, I wasn’t the only customer; a few others were picking these tasty morsels up for family breakfast.

In the US, once 10:00 pm hits, most restaurants or stores begin to close; in Taiwan, that’s when the street vendors come out for what’s referred to as the “night market.” The night market consists of several different food vendors lined up in between blocks alongside street retailers selling inexpensive clothes, shoes and bags.

The night market has all the best Chinese and Taiwanese foods from dumplings and hot noodle soups to snake and roasted duck parts. A memorable dish is “stinky tofu,” which definitely lives up to its name. The tofu is fermented in a unique way that gives it a pungent odor. But it’s popular across Taiwan and China.

In addition to the variety of delicious foods at the night market, the prices were equally appetizing. I could fill up on a variety of foods for under USD3. Of course, what I regarded as inexpensive is considered the norm for this sort of fare.

Food portions in Taiwan tend to be smaller. When the US chain franchise TGIFridays expanded into Taiwan, people were amazed by how large the food portions were, noted one of my relatives. Although portions are smaller, those who dine out tend to order a variety of dishes to share. And the lazy Susan turntables in all restaurants make it easy to do so.

When it comes to clothing, options are plentiful. There are often many vendors and stores along the streets selling clothes, shoes and bags at bargain prices. Department stores exist but usually stock expensive, high-end brands.

I spent New Year’s Eve at Taipei 101, also known as the Taipei Financial Center, one of the capitol’s landmark skyscrapers. It’s the second-tallest building in the world and includes 101 above-ground floors and 5 below-ground floors. Taiwan’s New Year’s Eve celebration was broadcast live from this venue.

The area was crowded with hundreds of people trying to find good spots to watch a concert by popular Taiwanese artists and fireworks launched from Taipei 101’s roof at the stroke of midnight. New Year’s Eve at Taipei 101 is the equivalent to Times Square for Americans, just not as crowded.

The relations between Taiwan and China has been strained, and most Taiwanese people don’t speak highly of China. Ironically, on all Taiwanese passports, addresses and products include the text, “Taiwan, R.O.C.”–Taiwan, Republic of China. Despite these tensions, China offers many opportunities for Taiwan to grow its economy. One of the stocks recommend in The Silk Road Investor, Chunghwa Telecom (NYSE: CHT), recently announced plans to expand its broadband services to mainland China.

After tasting over 50 different Taiwanese and Chinese foods, touring the country and learning about Taiwanese culture, my trip has come to an end. Sadly, I must leave Taiwan and get ready for the 23-hour flight to the US.