China and Taiwan have built one of the most intertwined and important economic relationships in the world, and yet that relationship is not mutually open, compliant with World Trade Organization norms, or even fully institutionalized. What's more, despite massive trade and investment flows, the boundary between the two is a serious flashpoint for potential conflict. But leaders in Beijing and Taipei have committed to normalize and deepen their economic intercourse and open a new post-Cold War era in their relationship. While the political significance of this gambit has captured attention worldwide, the scope of opening intended and the bilateral, regional, and global effects likely to ensue are as yet poorly understood. This volume attempts to remedy that uncertainty with careful modeling combined with a qualitative assessment of the implications of the cross-strait economic opening now agreed in an Economic Cooperation Framework Agreement (ECFA). The study explores the implications for Taiwan and China, for their neighbors, and for the United States if this undertaking is fully implemented by 2020.

This book provides a discussion of the general impact of WTO membership on both sides of the Taiwan Strait, and addresses the political and economic impact on cross-Strait relations of common membership.The book begins with an introduction which analyzes the state of cross-Strait economic and political relations on the eve of dual accession to the WTO and briefly introduces the chapters which follow. The first chapter discusses the concessions made by both sides in their accession agreements and is followed by two chapters which describe the manner in which the Taiwan economy was reformed to achieve compliance as well as the specific, restrictive trade regime that was put into place to manage mainland trade. The next two chapters deal with the implications of that restrictive trade regime for the Taiwan economy in Asia and with the nature of the interactions between the two sides within the WTO. The final four chapters of the volume examine the impact of membership on four sectors of the economy: finance; agriculture; electronics and automobiles. There is a post-script which briefly covers developments since the chapters were completed.

'. . . the book will be of great help to readers interested in Taiwan's economic performance over the past twenty years.' - Gilles Guiheux, The China Journal Taiwan's economic development experience represents a unique case study especially in the wake of the Asian financial crisis. Taiwan has performed outstandingly in terms of macroeconomic and industrial development, particularly during recent democratic and social change. This book aims to provide a broad picture of these institutional reforms and policy evolutions.

This book is about the basis and scope of impact that Taiwan – a democracy with a population of around 23 million – has on China, the most powerful remaining Leninist state which claims sovereignty over Taiwan and has a population of over 1.3 billion. It examines how Taiwan has helped China in its economic transformation, but argues that the former exercises greatest influence through its soft power. The expert and timely contributions in this book demonstrate how Taiwan exerts real influence in China through admiration of its popular culture, be it in music or literature, as well as its reach into politics and economics. As mainland Chinese visit Taiwan, they are most impressed with civility in everyday living based on a modernized version of the traditional Chinese culture. However, discussions in the book also reveal the limits of Taiwan’s impact, as the Chinese government tightly controls the narrative about Taiwan and does not tolerate any Taiwanese posing a threat to its monopoly of power.

This book examines how since about 2008 the economy of Taiwan has become ever more deeply integrated into the economy of China. It goes beyond a consideration of trade and investment flows, and discusses also the large population flows, the growing integration of the two financial systems and the nature of the deep economic integration at the industry and firm level. It considers the impact of growing economic integration on society and politics, assesses how China-Taiwan economic integration is affecting the East Asian region more widely, and explores the implications for international relations, including the United States dominance in the region. Overall, the book presents a comprehensive analysis of all the issues.

Taiwan has a special status for the United States, as both a leading high-technology economic partner and a place of political and security concern. The authors look at both the quantitative and qualitative evidence on the potential effects of a US-Taiwan free trade agreement (FTA), both for maximizing US economic benefits and for securing a prosperous and secure future for Taiwan. Their analysis indicates that the direct economic benefits of a prospective FTA would be modest and that the FTA could be most valuable to the United States if it leads Taiwan toward greater regional integration.