Accounting for Taiwan`s Economic Policy toward China

Abstract

This article explores the ideas, institutions, and interests in which Taiwan`s economic policy toward China is embedded. The authors indicate that the ideas behind Taiwan`s economic policy toward China are as vibrant as ever, the political foundation for a coherent and feasible policy is eroding, and commercial interests are digressing from the Taiwan government`s policy goals. Political forces around ideas have strong hearing on the formation of Taiwan`s economic policy toward China. The truthfulness or falseness of the security argument is of intrinsic value to Taiwan`s decision makers. The authors also point out that in order to have a complete picture of cross‐Strait economic relations, we need to specify how trade and investment with China influence Taiwan`s distribution of political interests.