Government, Business, and the Politics of Interdependence by John Q. Tian (auth.)

By John Q. Tian (auth.)

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Additional info for Government, Business, and the Politics of Interdependence and Conflict across the Taiwan Strait

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The analysis presented in this chapter is intended to show the dynamic factors pulling the two sides further apart politically despite deepening economic integration and interdependence. Given that the governments on both sides seek to manipulate cross-Strait economic relations in pursuit of their own political and strategic objectives, the focus of this chapter is on economic statecraft and the strategic considerations operating between the two sides across the Taiwan Strait. For Beijing, deepening economic interaction is a lure to woo Taiwan into an inextricably intertwined relationship that can be used to defuse the “time bomb” of Taiwan independence.

However, China has been divided into two separate jurisdictions under two equal political entities since 1949. ” It seems to have all the advantages of the independence policy advocated by the DPP while at the same time avoiding the risks to Taiwan’s security that a declaration of independence would incur. As part of the process of political liberalization and democratization, Lee Teng-hui began to push steadily for the removal of legal restrictions on activities to advocate the cause of Taiwan independence.

Through a case study of Taiwanese investment in Jiangsu province with the largest concentration of Taiwanese investment on the mainland, this chapter shows the dynamics of the political economy in China’s transformation and a nascent form of state-business relations being constituted at the local level, especially between local governments and small investors from Taiwan. Chapter 6 concludes the book with an effort to rethink some of the conceptual problems with existing analytical frameworks of interdependence, economic statecraft, and of the East Asian political economy.

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