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Unilateral or mutual dependence? The economic relations of Taiwan and the People's Republic of China.

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Jordan G.

Kozgazdasagi Szemle (Economic Review)

2005

vol. 52

issue 2

163-183

The economic relations of Taiwan and China, in terms of trade turnover and investments of operating capital, have been developing very rapidly since the early 1990s. Taiwan's export dependence has exceeded 20 per cent. Its investments of operating capital are estimated at around USD 100 billion and major Taiwanese production capacity has been transferred to the mainland. Nonetheless, the paper argues against the common view that Taiwan is entering a situation of unilateral dependence and vulnerability and in favour of growing mutual dependence. A violent move against Taiwan would jeopardize the fastest developing export-oriented sector of the Chinese economy and the country's own economic development strategy. Taiwanese firms have built a network of economic and social ties not only with Chinese firms and officials, but with multinational firms operating in China. Several other factors (such as WTO membership) are also strengthening the mutual dependence.

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1 Kozgazdasagi Szemle (Economic Review)

1 Jordan G.

1 2005

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Unilateral or mutual dependence? The economic relations of Taiwan and the People's Republic of China.