Cross-Strait Trade and Investment: Economic and Security Implications for the Republic of China

Issues and Studies

Volumn 33, Issue 12, 1997, Pages 70-93

  Boutin, J D Kenneth ^a  

^a NONE

Author keywords

Economics; Security; Taiwan ROC; The PRC; Trade and investment

Indexed keywords

EID: 0242382548     PISSN: 10132511     EISSN: None     Source Type: Journal    
DOI: None     Document Type: Article

References (93)

1. See, for instance, Edward Mead Earle, "Adam Smith, Alexander Hamilton, Friedrich List: The Economic Foundations of Military Power," in Makers of Modern Strategy: From Machiavelli to the Nuclear Age, ed. Peter Paret (Princeton, N.J.: Princeton University Press, 1986), 217-61; and Klaus Knorr, "Military Strength: Economic and Non-Economic Bases," in Economic Issues and National Security, ed. Klaus Knorr and Frank N. Trager (Lawrence, Kansas: Regents Press of Kansas, 1977), 183-99.
2. See, for instance, Edward Mead Earle, "Adam Smith, Alexander Hamilton, Friedrich List: The Economic Foundations of Military Power," in Makers of Modern Strategy: From Machiavelli to the Nuclear Age, ed. Peter Paret (Princeton, N.J.: Princeton University Press, 1986), 217-61; and Klaus Knorr, "Military Strength: Economic and Non-Economic Bases," in Economic Issues and National Security, ed. Klaus Knorr and Frank N. Trager (Lawrence, Kansas: Regents Press of Kansas, 1977), 183-99.
3. Quoted in Murray Weidenbaum, "Economics and National Security," The Washington Quarterly 11, no. 4 (1988): 39.
4. See, for example Jim Leitzel, ed., Economics and National Security (Boulder, Colo.: Westview Press, 1993); and Frans A. M. Alting von Geusau and Jacques Pelkmans, eds., National Economic Security: Perceptions, Threats, and Policies (Tilburg, The Netherlands: John F. Kennedy Institute, 1982).
5. See, for example Jim Leitzel, ed., Economics and National Security (Boulder, Colo.: Westview Press, 1993); and Frans A. M. Alting von Geusau and Jacques Pelkmans, eds., National Economic Security: Perceptions, Threats, and Policies (Tilburg, The Netherlands: John F. Kennedy Institute, 1982).
6. David A. Baldwin and Helen V. Milner, "Economics and National Security," in Power, Economics, and Security: The United States and Japan in Focus, ed. Henry Bienen (Boulder, Colo.: Westview Press, 1992), 39.
7. The term "Republic of China" is used in this paper in referring to the country and ruling state authorities, while the terras "Taiwan" and "Taiwanese" are applied to the island, which constitutes the bulk of the ROC, its population, and its business sector.
8. Recognition of the existence of a relationship between international economic and security issues can be traced back to Thucydides, however. See Beverly Crawford, "The New Security Dilemma Under International Economic Interdependence," Millennium 23, no. 1 (1994): 27 n. 2.
9. Klaus Knorr, "Economic Interdependence and National Security," in Knorr and Trager, Economic Issues and National Security, 5-6.
10. Stuart Harris, "The Economics Aspects of Security in the Asia-Pacific Region," Journal of Strategic Studies 18, no. 3 (1995): 33.
11. Crawford, "The New Security Dilemma," 26.
12. ibid., 27.
13. Knorr, "Economic Interdependence and National Security," 5.
14. Ibid., 7.
15. Penelope Hartland-Thunberg, "National Economic Security: Interdependence and Vulnerability," in von Geusau and Pelkmans, National Economic Security, 51-52.
16. Gautam Sen, The Military Origins of Industrialisation and International Trade Rivalry (London: Pinter Publishers, 1984), 186.
17. Bernard K. Gordon, Politics and Protectionism in the Pacific, Adelphi Paper no. 228 (London: International Institute for Strategic Studies, 1988), 7.
18. Robert Gilpin, The Political Economy of International Relations (Princeton, N.J.: Princeton University Press, 1987), 404.
19. Jacques Pelkmans, "The Many Faces of National Economic Security," in von Geusau and Pelkmans, National Economic Security, 6.
20. Knorr, "Economic Interdependence and National Security," 8-9.
21. Ibid., 9.
22. Harris, "The Economic Aspects of Security," 38.
23. Ibid., 42-43.
24. Ibid., 39.
25. Mark Herander, "International Trade Relations, Trade Policy, and National Security: The Role of Economic Analysis," in Leitzel, Economics and National Security, 91.
26. Ibid., 96-102.
27. Jószef Bognár, "Economic Growth and Security," in von Geusau and Pelkmans, National Economic Security, 101.
28. Tse-kang Leng, The Taiwan-China Connection: Democracy and Development Across the Taiwan Straits (Boulder, Colo.: Westview Press, 1996), 120.
29. Y. Y. Kueh, "Foreign Investment and Economic Change in China," in The Chinese Economy Under Deng Xiaoping, ed. Robert F. Ash and Y. Y. Kueh (Oxford: Clarendon Press, 1996), 200.
30. Tzong-Biau Lin, "Economic Nexus Between the Two Sides of Two Sides of the Taiwan Straits: With Special Emphasis on Hong Kong's Role," in Economic Development of the ROC and the Pacific Rim in the 1990s and Beyonf, ed. Lawrence R. Klein and Chuan-Tao Yu (Singapore: World Scientific Publishing, 1994), 229.
31. N. T. Wang, "Taiwan's Economic Relations with Mainland China," in Taiwan's Enterprises in Global Perspective, ed. N. T. Wang (Armonk, N.Y.: M. E. Sharpe, 1992), 63.
32. Leng, The Taiwan-China Connection, 123.
33. Denis Fred Simon, "Taiwan's Political Economy and the Evolving Links between the PRC, Hong Kong, and Taiwan," AEI Foreign Policy and Defense Review 6, no. 3 (1986): 42-51.
34. Tun-hwa Ko, "The Interests and Policies of the Republic of China," in National Security Interests in the Pacific Basin, ed. Claude A. Buss (Stanford, Calif.: Hoover Institution Press, 1985), 273-74.
35. See, for example, Emily Thornton, "Greener Pastures: Taiwan's Chip Makers Look for New Ground," Far Eastern Economic Review, December 21, 1995, 64.
36. Simon, "Taiwan's Political Economy," 43.
37. Wang, "Taiwan's Economic Relations with Mainland China," 54.
38. Leng, The Taiwan-China Connection, 121.
39. Wang, "Taiwan's Economic Relations with Mainland China," 55.
40. For a comprehensive list of pertinent PRC policy initiatives, see Chi Schive, Taiwan's Economic Role in East Asia (Washington, D.C.: Center for Strategic and International Studies, 1995), 24.
41. Leng, The Taiwan-China Connection, 125.
42. "Harassed Business," Far Eastern Economic Review, August 17, 1995, 12.
43. Wang, "Taiwan's Economic Relations with Mainland China," 73.
44. Leng, The Taiwan-China Connection, 127.
45. IbId, 106.
46. Simon, "Taiwan's Political Economy," 48.
47. Ibid., 47-48.
48. Ibid., 48.
49. Schive, Taiwan's Economic Role in East Asia, 25.
50. Julian Baum, "Calm Passage: Mainland-Taiwan Shipping Links Open Quietly," Far Eastern Economic Review, May 1, 1997, 47.
51. "Strait Labels," ibid., February 1, 1996, 57.
52. "Shipping Pact Sealed," ibid., June 5, 1997, 13.
53. Leng, The Taiwan-China Connection, 121.
54. Milton D. Yeh, "Ask a Tiger for Its Hide? Taiwan's Approaches to Economic Transactions Across the Strait," in Southern China, Hong Kong, and Taiwan: Evolution of a Subregional Economy, ed. Jane Khanna (Washington, D.C.: Center for Strategic and International Studies, 1995), 67.
55. Leng, The Taiwan-China Connection, 107.
56. YeH, "Ask a Tiger for Its Hide?" 61-62.
57. Wang, "Taiwan's Economic Relations with Mainland China," 68-69.
58. Leng, The Taiwan-China Connection, 124.
59. "Racing with China," Far Eastern Economic Review, October 3, 1996, 12.
60. Janne E. Nolan, Military Industry in Taiwan and South Korea (Houndmills: Macmillan Press, 1986), 49.
61. J.D. Kenneth Boutin, "Technology Policy in the Republic of China: The Impact of Security Concerns," East Asia Forum 3 (1994): 123-24.
62. Ibid., 123.
63. Leng, The Taiwan-China Connection, 121, 123.
64. Xiamen, Fuzhou, Guangzhou, and Shantou established policies encouraging Taiwan investment, while Beijing, Hainan, Hebei, Wenzhou, and Pudong established "Taiwan investment zones." Wang, "Taiwan's Economic Relations with Mainland China," 58.
65. Figures on Taiwanese investment in the PRC have probably been exaggerated by PRC officials seeking to advertise their particular regions, and underestimated by Taiwanese businesses involved in unapproved investment projects. See Simon Long, "Regionalism in Fujian," in China Deconstructs: Politics, Trade, and Regionalism, ed. David S.G. Goodman and Gerald Segal (London: Routledge, 1994), 211-12.
66. Julian Baum, "Mainland Attraction: Firms Ignore Politics to Invest in China," Far Eastern Economic Review, April 17, 1997, 28.
67. Lin, "Economic Nexus," 215-16.
68. Long, "Regionalism in Fujian," 212.
69. "Rise in Mainland Deals," Far Eastern Economic Review, May 29, 1997, 65.
70. See note 64 above.
71. Wang, "Taiwan's Economic Relations with Mainland China," 75.
72. For official sanction for investment, see Lin, "Economic Nexus," 228; for KMT investment, see Leng, The Taiwan-China Connection, 93.
73. For official sanction for investment, see Lin, "Economic Nexus," 228; for KMT investment, see Leng, The Taiwan-China Connection, 93.
74. Julian Baum, "Fat Chance: Taiwan Seeks Diplomatic Leverage in Cross-Strait Policy," Far Eastern Economic Review, August 29, 1996, 62.
75. Leng, The Taiwan-China Connection, 107.
76. Ibid.
77. Ibid.
78. "Rules Relaxed," Far Eastern Economic Review, June 20, 1996, 69.
79. Julian Baum, "Chafing at the Bit: Taiwanese Firms Dismiss Warnings About China," ibid., November 7, 1996, 90.
80. "Squeezing China," ibid., June 19, 1997, 75.
81. Leng, The Taiwan-China Connection, 113.
82. See note 64 above.
83. See note 71 above.
84. For President Enterprises, see "Key Investor Halts Plans," Far Eastern Economic Review, September 26, 1996, 75; for Formosa Plastics, see note 71 above.
85. Michael Vatikiotis, "Big Squeeze: Taipei Overshadowed by China's ASEAN Thrust," Far Eastern Economic Review, June 13, 1996, 29.
86. See note 71 above.
87. See note 76 above.
88. Leng, The Taiwan-China Connection, 113.
89. Ibid., 113-14.
90. Henry Sender, "Instant Oodles: Noodle Maker Tingyi Might Be the Best China Play," Far Eastern Economic Review, February 15, 1996, 45.
91. "Food Firms Threaten Halt," ibid., March 21, 1996, 63.
92. "Investment Warning," ibid., August 24, 1995, 59.
93. Douglas Habecker, "Cool Feet: Taiwan Businessmen Rethink China Plans," ibid., October 12, 1995, 150.