An analysis of economic integration between China and Taiwan

Abstract

Cross-strait economic interactions have been growing tremendously in terms of trade and investment in recent years despite ongoing political tensions between China and Taiwan, and yet this economic integration is not mutually open, compliant with WTO norms, or even fully institutionalised. As the call for reunification from China increases, the boundary between the two is a serious flashpoint for potential conflict and thus the economic aspect of such special relationship deserves a thorough analysis to better understand the conflicted interests between both sides of the Taiwan Strait. Using a plethora of data collected from government official websites, this dissertation will offer an up-to-date view on the current cross-strait economic integration status that has been brimming with conflicts despite efforts from the current Tsai administration to reverse such trend. As an implication of this economic integration, a pessimistic view of future cross-strait relations due to confrontative stances will also be discussed in this paper.