Emergence of the Greater China Circle Economies: Cooperation versus competition

Abstract

The integration of the so-called greater China economies among Mainland China, Taiwan, and Hong Kong is one part of the global trend of regionalism. The significance of integration in terms of foreign trade and foreign direct investment demonstrates not only rapid growth but also diversity, ever since Mainland China pursued her open door policy of economic reform in 1979. For instance, the combined volume of Hong Kong and Taiwan accounted for as much as 74.1% of Mainland China's capital utilization in 1993, which in turn contributed to the rapid economic growth of Mainland China over the last two decades. The membership of Mainland China and Taiwan to the WTO, as expected by the end of 2001, will facilitate a more official arrangement of intergovernmental coordination within these Triangle Economies. However, the government of Taiwan will continue to evaluate the cross-strait relations in the context of the nation's overall political and economic security as long as the government of Mainland China does not renounce the use of military force against Taiwan.