Does money talk? The ROC`s economic diplomacy

Abstract

This paper examines how the Republic of China (ROC) uses economic-related techniques to achieve its foreign policy goals as well as factors that affect the ROC`s efforts. The paper`s central contention is that the effectiveness of economic diplomacy depends not only on wealth but also on the global environment and the capacity of the Taipei government to negotiate and compromise. In the future, as the ROC`s economic leverage decreases and the PRC`s sensitivity increases, the Taipei government will need all the statesmanship and leadership at its disposal if it is to employ its economic diplomacy effectively.