The Magnetic Effect of China on Taiwan’s Political Economy

• Main Authors: Meng-hsueh Chuang, 莊孟學
• Other Authors: 顏建發
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/03651853617160433297

碩士 === 淡江大學 === 中國大陸研究所碩士在職專班 === 95 === Since Deng Xiaoping’s visit to southern China, which in return established the route of opening up and economic reform. The advantages of the size of its population for consumption, its vast territory for low land cost, and its abundant resources, Chinas has become the new rising and developing economic nation both in Asia and the world. Reform and opening up, like a surging electric power, are spraying in China and attracting businesses internationally. This force like a strong magnetic power draws capitalists to pour unbounded funds, technology, and labor into the Chinese market of various economic activities. Taiwan lies off the southeastern coast of mainland Asia. It has been a developed trade area since four hundred years ago. Especially after World War II, the rapid growing of its economy and democratizing of its politics were well known and recognized by the international community as a miracle. In the sixties, seventies, and until the nineties, Taiwan’s all-around development had won itself the name of the Asia Four Dragons. In 1987, as the martial law lifted and the labor, democratic, environmental, etc. movements erupted, Taiwan’s investing environment deteriorated. The budding democratic development has also brought with it a closer trade relation between Taiwan and China. Taiwan’s companies started doing businesses in China and invested heftily and gradually. And, it has seeded fierce competitions between the two nations later on. In July 2006, Taiwan’s Bureau of Trade announced the statistics of trades of Taiwan and China. Over the year of 2006, Taiwan had a trade surplus with China in the amount of $3 billion dollars every month. In the first five months of 2006, the total investment in China was $2.87 billion dollars, an increase of 46.6% compared to a year before. And the reason behind it was the supply of raw material still has to be exported from Taiwan. In 2005, Taiwan’s trade surplus with Chinas has exceeded $30 billion dollars for the first time. However, at the same time, Taiwan imported almost $20 billion dollars of goods from China, which represent 10% of total imports and Taiwan’s third biggest importing source. The temptation of the potential market of the 1.3 billion populations in China, can Taiwan’s business people be expected to protect national security over their own benefits? The Chinese government has dealt with the Taiwan-China relations using a two-method approach. On the one hand, it welcomes Taiwan’s businesses to China. But, on the other hand, it opposes to either of Taiwan’s independence movement or two-China policy. The friendly appearance of the business environment has some Taiwanese business people to forgo their national identity. he replacement of the KMT by the DPP in 2000 has brought about many setbacks in many aspects of Taiwan’s society, including political, economical, and social. As an opposing party, the KMT has acted uncooperatively with the new ruling party. Supports for each party have grown increasingly disapproving of one another. The whole society has divided into two extremes, pan-green or pan-blue. This vicious cycle of a rival society is showing no sign of vanishing after almost eight years of DDP taking office. In 2000, Taiwan and China have become a member of the WTO, since then, Taiwan not only has to faced challenges and competitions internationally, but also from the uprising China. The low cost of production in China and increasing import of goods from China have significantly affected the home market in Taiwan. Nevertheless, in the recent few cases of China dumping, as a WTO member, Taiwan was able to look after its own interest by the anti-dumping action. The emergence of China’s economy has lowered people’s alertness of adversary from the Communist China. After Taiwan’s democratic development, freedom of speech has been abused by some mainstream medias, which would speak in China’s favor and acted as its broadcasters. Economically, a great portion of Taiwanese has an illusion of the potential profit=making market of the 1.3 billion Chinese populations. This strong attraction has them surrendered their national identify to accept whatever the Chinese government imposed on them. Taiwan is now facing many tough challenges. It’s the government’s job and the core value of its existence to both to protect the freedom of its people and their prosperity. The growing power of China is diminishing Taiwan’s bargaining power in the international community. In a democratic country, the ruling party, which has won the support of the majority, should fulfill its obligation to bring about the security and safety of its nation and people.