The Taiwan China Connection

Exploring the transitional role of the state in Taiwan's economic development, this book focuses especially on the impact of trade with mainland China. Tse-Kang Leng argues that the basic structure of political forces within Taiwan and its pattern of external economic relations have been transformed in the 1990s, with cross-Straits trade playing a

Exploring the transitional role of the state in Taiwan's economic development, this book focuses especially on the impact of trade with mainland China. Tse-Kang Leng argues that the basic structure of political forces within Taiwan and its pattern of external economic relations have been transformed in the 1990s, with cross-Straits trade playing a key part. Although politically embarrassing to the government, this trade provides an economic opportunity that is irresistibly attractive to business interests.Thus, cross-Straits trade and investment have served as a fulcrum by which societal interests have moved an unwilling state. Going beyond the ?strong state? paradigm, the author's analysis of current cross-Straits economic policies reveals a sharp contrast between Taiwan's authoritarian past and its current era of democratization. Weighing the crucial forces at work in Taiwan?democratization, state-society interaction, and economic interdependence with mainland China?Leng provides a thorough analysis of Taiwan's political and economic development in the 1990s and beyond.

At publication date, a free ebook version of this title will be available through Luminos, University of California Press’s Open Access publishing program. Visit www.luminosoa.org to learn more. China’s relation to Taiwan has been in constant contention since the founding of the People’s Republic of China in October 1949 and the creation of the defeated Kuomintang (KMT) exile regime on the island two months later. The island’s autonomous sovereignty has continually been challenged, initially because of the KMT’s insistence that it continue to represent not just Taiwan but all of China—and later because Taiwan refused to cede sovereignty to the then-dominant power that had arisen on the other side of the Taiwan Strait. One thing that makes Taiwan so politically difficult and yet so intellectually fascinating is that it ­­is not merely a security problem, but a ganglion of interrelated puzzles. The optimistic hope of the Ma Ying-jeou administration for a new era of peace and cooperation foundered on a landslide victory by the Democratic Progressive Party, which has made clear its intent to distance Taiwan from China’s political embrace. The Taiwanese are now waiting with bated breath as the relationship tautens. Why did détente fail, and what chance does Taiwan have without it? Contributors to this volume focus on three aspects of the evolving quandary: nationalistic identity, social economy, and political strategy.

Even as relations between Taiwan and the People's Republic of China continue to be strained, investment by Taiwanese businesses in China is growing every year. Between 1978 and 1994, Taiwan businesses invested $10 billion in China, 10% of the total foreign investment during that period. This study describes the magnitude and importance of this investment. Hsing demonstrates the role of a shared cultural heritage and language and the role of Chinese local government in building networks of firms in the two countries.

The future of the Taiwan Strait is more wide open than at any other time in recent decades. Tensions between China and Taiwan have eased since 2008. But the movement toward full rapprochement remains fragile. Whether the two sides of the Strait can sustain and expand a cooperative relationship after years of mutual distrust and fear is still uncertain. The waters of the Strait are uncharted, and each side worries about shoals beneath the surface. The current engagement between Beijing and Taipei may make possible a solution to their six-decade-long dispute. Whether, when, and how that might happen is, however, shrouded in doubt. China fears the island's permanent separation, by way of either an overt move to de jure independence or continued refusal to unify with the mainland. Taiwan fears subordination to an authoritarian regime that does not have Taipei's interests at heart. And the United States worries about the stability of the East Asian region. Richard Bush, who studied issues surrounding Taiwan during almost twenty years in the U.S. government, explains the current state of relations between China and Taiwan, providing the details of what led to the current situation. And he extrapolates on the likely future of cross-Strait relations. Bush also discusses America's stake, analyzing possible ramifications for U.S. interests in the critically important East Asia region and recommends steps to protect those interests. "At the heart of the [Taiwan conundrum] is a question of definition. Does the dispute stem from the protracted division of the Chinese state after World War II, or does the Republic of China on Taiwan in some sense constitute a successor state of the old Republic of China (ROC), one on a par with the People's Republic of China on the Chinese mainland? Whether and how the unification of the two entities might occur hinges on the answer. Indeed, I have argued that the core of the dispute between the two sides has been their

Making Capitalism in China: The Taiwan Connection shows that small- and medium-sized Taiwanese investors are organized in production and marketing networks, not vertically integrated conglomerates. When in China they directly negotiate and establish partnerships with entrepreneurial local officials, not the central bureaucracy. Also, they effectively transfer a capitalist ideology of production to Chinese factory workers. Importantly, the investors attribute their business successes in China to the cultural, historical, and linguistic affinities they share with these local agents. Connections regarding socio-cultural identity do more than facilitate business dealings or ease labor relations; Hsing asserts that partnerships between mainland settlements and overseas Chinese investors constitute a local-global coalition of economic reform, one that strengthens local autonomy in China and bypasses the control of the central government. This coalition is nothing short of a new pattern of foreign direct investment, one profoundly influenced by both cultural boundaries (usually deemed insignificant in matters of capital flow and globalization) and local state agents (who operate in this case as crucial business partners). A notable work that will appeal to all students of East Asian economic organization, ethnic business networks, international investment, and the political economy of socialist transition. Hsing's book is based on hundreds of interviews and participatory observations that she conducted between 1991 and 1996 with investors, local officials, and factory workers in Taiwan, Hong Kong, Guangdong, Fujian, and Shanghai.

Coincided with China’s economic reform and her rapid ascendance to a great power status, the relations between Taiwan and Chinese mainland since 1979 have also seen some encouraging development. However, the rapprochement is nothing but a smooth ride. Taiwan Strait has always been full of tensions and hostility since the communist took over the mainland over sixty years ago.The periodical tensions in the cross-Strait relations have from time to time threatened to derail the peace talks between the two sides, and poised to jeopardize the region’s peace and stability. This book studies the past, present and future relations across the Taiwan Strait and examines many important questions such as internal and external factors contributing to the Taiwan’s shift in her mainland policy, impacts of Taiwan democratization on the cross-Strait relations, the development of Taiwanese identity and rise of Taiwanese nationalism, the possibility of expanding Taiwan’s international space under the shadow of China, the prospect of reunification between Taiwan and China, and the roles of the third parties, such as U.S., NGOs and Taiwan businessmen, in the changing relationship between the two sides. Taiwan and the Rise of China will certainly help readers, especially those who lack of historical perspective of the political division of the two political adversaries, to grasp the complexity and nature of the cross-Strait relations and faster a real understanding of the significance of this relationship to peace in the region as well as the world in the 21st century.

Taiwan's Relations with Mainland China is the first book to deal with the role of Taiwan’s leadership politics in the development of Taiwan’s mainland policy and the consequences for US-Taiwan relations.