Chen-yuan Tung

Cross-strait Economic Relations in the Era of Globalization: China's Leverage and Taiwan's Vulnerability Chen-yuan Tung

Taiwan's government feels ill at ease having a close economic relationship with its powerful political rival China. Taipei's primary concern is that Beijing will exploit its economic leverage by imposing economic sanctions to achieve political goals if asymmetric interdependence emerges between Taiwan and China. This book intends to answer two categories of questions: First, how large is China's economic leverage over Taiwan through economic sanctions and what factors would contribute to China's decision to exploit this economic leverage? And, second, how vulnerable is Taiwan to China's exploitation of economic leverage through imposing economic sanctions and what factors would contribute to the success or failure of these sanctions? Overall, in terms of both initiation and outcome of economic sanctions, China has no economic leverage over Taiwan and Taiwan's vulnerability with respect to cross-Strait economic relations is almost nonexistent.