Journal of Contemporary China Accounting for Taiwans strongEconomicstrong.pdfVIP

Accounting for Taiwans Economic Policy toward China SZU-YIN HO AND TSE-KANG LENG* This article explores the ideas, institutions, and interests in which Taiwans economic policy toward China is embedded. The authors indicate that the ideas behind Taiwans economic policy toward China are as vibrant as ever, the political foundation for a coherent and feasible policy is eroding, and commercial interests are digressing from the Taiwan governments policy goals. Political forces around ideas have strong hearing on the formation of Taiwans economic policy toward China. The truthfulness or falseness of the security argument is of intrinsic value to Taiwans decision makers. The authors also point out that in order to have a complete picture of cross-Strait economic relations, we need to specify how trade and investment with China influence Taiwans distribution of political interests. Introduction In early April, Japanese consultant-turned-management guru Kenichi Ohmae and American lawyer-turned-China observer Gordon Chang sparred in Taipei over the future of China and, hence, Taiwan. Ohmae makes it clear that China is to become an economic power and Taiwan should make good use of Chinas potential to develop itself. On the other hand, Chang believes that China now harbors high political and commercial risks and Taiwan should diversify its reliance on the Chinese market. These two opposing views epitomize the two lines of thinking in Taiwans perennial policy debate regarding its economic relations with Chin