Explains the complex and paradoxical process of economic integration and political divergence in current relations between Taiwan and mainland China. It analyzes the dynamics of economic statecraft on both sides and the conflicts between state objectives and business interests in the context of globalization and regional economic integration.

This book examines when and how international commerce can come to flourish in the presence of international political tensions and rivalry, and focuses in particular on the relationship across the Taiwan Strait.

As tensions continue to rise between the People’s Republic of China and Taiwan, numerous analysts and officials have warned of a growing risk of military conflict, which could potentially draw in the United States. How worried should we be about a war in the Taiwan Strait? Scott L. Kastner offers a comprehensive analytical account of PRC-Taiwan relations that sheds new light on the prospects for cross-strait military conflict. He examines several key regional trends that have complex implications for stability, including deepening economic integration, the shifting balance of military power, uncertainty about the future of U.S. commitment, and domestic political changes in both the PRC and Taiwan. Kastner argues that the risks of conflict are real but should not be exaggerated. Several distinct pathways could lead to the breakout of hostilities, and the mechanisms that might allay one type of conflict do not necessarily apply to others—yet war is anything but inevitable. Although changes to the balance of power introduce risks, powerful mitigating factors remain in place and there are plausible steps to reduce the likelihood of military conflict. Drawing on both international relations theory and close empirical analysis of regional trends, this book provides vital perspective on how a war in the Taiwan Strait could occur—and how one could be avoided.

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.

In this timely book, distinguished analyst Ralph Clough assesses the intractable differences between Beijing and Taipei, the rise of an opposition party advocating Taiwan independence, and BeijingOs threat to use military force. At the same time, he weighs the moderating influence of investment and trade across the Taiwan Strait and the reopening of cross-strait dialogue. The author argues that the United States can best minimize the risk of conflict with a policy of ambiguity that retains the flexibility to intervene militarily or not as circumstances dictate and that at the same time gives more active approval and support to cooperation between the people and governments on both sides of the straight.

China–Taiwan economic ties are now among the key factors influencing the relations between the two sides of the Taiwan Strait which is still one of the flashpoints in today’s world. This book traces the origin and the process of how so-called “cross-strait economic ties” became such a key factor in China-Taiwan relations throughout the 1990s and how this factor has affected China–Taiwan relations since then. By focusing on “Taiwan’s domestic politics” as it relates to the domestic conflicts between opposing political and economic forces in Taiwan over the political relations and economic ties across the Taiwan Strait, the book demonstrates that the growth of cross-strait economic ties since 1990 has significantly affected Taiwan’s domestic politics which in turn has had a profound impact on China–Taiwan relations. Although the growth of China–Taiwan economic ties could hardly resolve the so-called “Taiwan problem” and might even lead to some political and economic conflicts between the two sides at times, through Taiwan’s domestic politics, it has reduced the likelihood of severe confrontation, especially the military one, in the Taiwan Strait. As this book reveals, the interactions between the economic winners, the economic losers, the political parties, the government, and the general public in Taiwan’s domestic politics as a result of the growth of cross-strait economic ties have played an important role in the development of China–Taiwan relations, leading to a very confrontational situation from 1995 to 2008, a relatively peaceful Taiwan Strait from 2008 to 2016, and a “cold peace” between the two sides since 2016.

This book examines the relationship between cross-border economic ties and international relations in the context of China-Taiwan relations. It focuses on Taiwan's domestic politics as an intervening variable in analyzing the relationship between China-Taiwan economic ties and their political relations.