Asia Program

Cross-Strait Economic Ties: Agent of Change, or a Trojan Horse?

Ramon Myers, Terry Cooke, and Tun-jen Cheng

This Special Report discusses both opportunities and challenges of cross–Taiwan Strait economic ties for domestic economic developments in China and Taiwan as well as their bilateral relationship. Ramon H. Myers of the Hoover Institution argues that Taiwan will gain economically, build friendship and trust, and pave the way for a long-term solution of the divided-China issue by engaging China. Terry Cooke of the Foreign Policy Research Institute maintains that economic globalization will bring about regional stability and reduce military and political tension across the Taiwan Strait.Tun-jen Cheng of the College of William and Mary suggests that the principal hazard for Taiwan because of the concentration of Taiwan’s trade with and investment in China is recession or currency fluctuation on the mainland.While the three essays agree that Beijing is unlikely to use Taiwan’s economic dependence on the mainland to coerce Taiwan politically, they differ on whether the growing cross-Strait economic ties will necessarily bring about economic benefits to Taiwan.

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