A Political Analysis of Taiwan`s Economic Dependence on Mainland China

Abstract

This article argues that an analysis of the political impact of Taiwan`s economic dependence on mainland China should be put into a broader spectrum of the international division of labor The traditional wisdom of economic statecraft holds that economic dependence may increase the chance of economic sanctions from hostile nations and thus endanger national security. However in the era of economic globalization, unilateral economic sanctions are rarely effective. This article examines whether the cross-Strait economic interaction is \"asymmetric\" or \"interdependent.\" Due to the introduction of such international factors as strategic business alliances and multinational cooperation, it is difficult to identify businesses of the target country while imposing sanctions. To guarantee national security, the Taiwanese state has to adjust its role to promote internationalization and create a comprehensive division of labor with the other side of the Taiwan Strait.