1. Prepared By Prof Alvin So1 SOSC 188 Lecture 28 The Chinese National Reunification (II): Taiwan

2. Prepared By Prof Alvin So2 Economic and Political Challenges After democratization, ready to play the China Card in the late 1980s Asymmetrical integration The future of the Mainland-Taiwan-US triangle

3. Prepared By Prof Alvin So3 Economic and Political Challenges 1950s – 1970s Authoritarianism (martial law, militarism, repression) Rapid economic development (land reform, export-led industrialization) Anti-mainland: condemned the communist government as bandits, swore to defeat the communists on National Days, ban any interaction with the mainland Challenges - Political: diplomatic isolation, growing protests against authoritarianism Economic: high cost (wages/rent/currency), rising competitors, protectionism Responses in the 1980s - Industrial upgrading (high-tech zones) & industrial relocation to Southeast Asia Democratization (legalized opposition party, lift the martial law, civil liberties)

4. Prepared By Prof Alvin So4 After democratization, ready to play the China Card in the late 1980s Start with civil society contacts (family reunions, tourism, academic conferences), tolerated indirect trade (through HK) and smuggling Later legalized “unofficial” investment and indirect trade and allowed semi-official contacts (Still no official contacts and direct trade/links)

5. Prepared By Prof Alvin So5 Asymmetrical integration Growing economic integration - Massive relocation on the mainland in the 1990s, Taiwan became the number top largest investors on the mainland, and mainland is the largest trading partner of Taiwan But also growing political tension - The DPP pursued a pro-independent platform (promote Taiwan nationalism, cultivate Taiwan cultural heritage and identity, change the name from ROC to Taiwan, terminate the National Unification Council) Later proposed "One country, two governments“, “state-to-state” relationship, "Three stages of unification: contacts, trades, political talks"

6. Prepared By Prof Alvin So6 The future of the Mainland- Taiwan-US triangle Mainland: wants to push for unification, use (1) economic cards to buy off the Taiwan capitalists, (2) empower the Taiwan opposition parties to weaken the DPP (3) use the military threat US wants the status quo (a divided China), sell arms to Taiwan but warned the DPP not to go too far) Taiwan: the national issue has deeply divided the society into pro-unification and pro-independence, the compromise is “deferred unification” (no time table, no deadline, let the future decides)