Government, Business, and the Politics of Interdependence by John Q. Tian (auth.)

By John Q. Tian (auth.)

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Tian, Government, Business, and the Politics of Interdependence and Conflict across the Taiwan Strait © John Q. Tian 2006 Strategic Interaction across the Strait 19 point in mainland policy towards Taiwan came in January 1979 when the National People’s Congress (NPC) Standing Committee released a “Message to Taiwan Compatriots” initiating a new policy of peaceful unification. This document called for an end to military confrontations across the Taiwan Strait and a revival of contacts and exchanges.

Not only did Taipei reject the mainland’s definition of “one China” as the PRC, but it has also increasingly avoided using the phrase as anything other than a historical and cultural concept. In response to Beijing’s pressure for political negotiations, Taipei has insisted that it will negotiate only when Beijing renounces the threat of the use of military force against Taiwan, recognizes Taiwan as an equal political entity, and allows it space for participation in the international community. In addition, to counter the integrative pull of economic Strategic Interaction across the Strait 31 interactions across the Strait, Taipei, despite its rhetoric to the contrary, has set up various obstacles to impede further cross-Strait interactions.

The fact that so many Taiwanese businesses have been attracted to the mainland against so many odds prompts questions about nascent forms of governmentbusiness relations in mainland China. Besides having interest in its own right, a study of the interactions between Taiwanese investors and local governments on the mainland can also provide insights into the dynamics of an emerging new incentive structure at the local level in mainland China’s transitional political economy. This book approaches the paradoxical development of cross-Strait relations on three levels: the strategic interactions between the governments of the two sides; state-society relations on each side; and economic interactions through business networks.

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