Abstract

 Purpose: The paper aims to analyze the political and economic relations between China and Taiwan from 1996 and 2016.
 Methodology/Approach: Multi-method methodology is applied to understand 20 years of complex interdependency relation between China and Taiwan. A logistic regression model is used to stablish the interactions among the variables and then a historical perspective provides an in-depth discussion regarding the political entities’ relationship.
 The findings: China as the principal Taiwanese trade partner provokes a dilemma to Taiwan, because these condition pressure to Taiwanese government adopt international insertion that don’t compromise the Chinese preferences. Also, China hostile diplomacy, situation in strategic triangle among China, Taiwan and United States, and electoral period correspond the other variables that influences Taiwanese political behavior.
 Research Limitation/implication: The analyses don’t cover the Tsai Ing-wen government but indicates the possibilities to the current administration.
 Originality/Value of paper: Although the paper has a historical limitation, the originality is the use of multi-method approach. This paper contributes in methodological and theorical assessment about economic and political relations between China and Taiwan.
 
Highlights
The aim of the paper is to analyze the political and economic relation between China and Taiwan, from 1996 to 2016, its impacts on Taiwan’s economy and how influenced the Taiwanese international insertion
The history demonstrates that the Taiwanese Diplomacy counts on the American military support to handle the Chinese threaten
Until the 1970’s, U.S form an official alliance with Taiwan against China, in 1979 the U.S government switch the diplomatic recognition to Beijing and establish an informal cooperation with Taipei, this framework provided a fairly amicable relations among the three during the 1980’s
Summary
The aim of the paper is to analyze the political and economic relation between China and Taiwan, from 1996 to 2016, its impacts on Taiwan’s economy and how influenced the Taiwanese international insertion. The Taiwan perspective of theses relations are the focus of the analyses. During the eight years of Ma Ying-jeou’s administration he established an economic and political approximation with the People’s Republic of China. Some agreements were signed between China and Taiwan (SEF, online). Despite the agreements signed by the two side of the strait, there are internal questionings, in Taiwan, about the effectiveness of the cross-strait policy to Taiwan economy, and to its international affairs (CABESTAN, 2013). The elections of Tsai Ing-wen on January 2016 changed the directions of Taiwanese foreign relations regarding China. The inaugural speech made on 20th May 2016 was an indication that changes are coming
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