The Political Economy of Taiwan´s Relations with Southeast Asia: The “Southward Policy”

Abstract

When President Lee Teng-hui and Premier Lien Chan visited Southeast Asia in early 1994, Taiwan's Southward began to be known world-wide. Superficially, this policy is aimed at strengthening Taiwan's economic relations with Southeast Asian countries, but in reality the ROC Government intends to expand Taiwan-Southeast Asian economic linkages in exchange for Tai wan's political participation in regional organizations and activities. Yet, while Southeast Asian countries welcome Taiwan's economic resources (capital and technology], they hesitate to upgrade their political relations with Taiwan owing to their deference to China. This article suggests that while Taiwan exerts efforts at streng thening its relations with Southeast Asia, it should also promote practical relations with mainland China. In addition, the South ward should be seen as a long-term objective instead of a short-term programme.