Prepared By Prof Alvin So1 SOSC 188 Lecture 27 The National Reunification Project (I) Mainland

Prepared By Prof Alvin So2 The Historical Formation of Three Chinese States The Open Door Policy in the late 1970s The Coastal Developmental Policy in the late 1980s

Prepared By Prof Alvin So3 The Historical Formation of Three Chinese States Colonialism and the Cold War split China into three separate states Colonial Hong Kong, authoritarian Taiwan, and communist mainland Development policies between 1949 and the mid-1970s - Mainland: withdrawal from world-economy, radical communism, self-reliance Taiwan: State-led export-industrialization Hong Kong (HK): Laissez-faire state export-industrialization Development problems in the late 1970s - Mainland: Economic stagnation, aging technology, unemployment Taiwan/HK: Faced both internal (labor shortage, high cost, pollution problem), external (protectionism, keen competitions, high currency value) challenges

Prepared By Prof Alvin So4 The Open Door policy in the late 1970s Two goals: economic development as quickly as possible & national unification of Hong Kong and Taiwan The Open Door Policy wanted to promote fast-speed economic development targeted at Am, European, and Japanese transnationals, and aimed to obtain high-tech, capital investment, management know-how Used joint-ventures, local materials to stimulate state enterprises A failure: transnationals complained of bureaucracy, restricted labor practice, unfavorable foreign exchange, closed Chinese market

Prepared By Prof Alvin So5 The Coastal Development Strategy in the late 1980s Economic integration and national unification can work together! targeted at the small & medium-size firms in Taiwan and HK didn't mind labor-intensive industries & raw materials import local govt. took the initiatives and made deals with wholly- owned foreign firms Local actors cut down bureaucratic red tapes ethnic bonds & national unification drives legitimized communist officials to grant favors to HK/Taiwan capitalists