Unequal Economic Exchange and National Identity in Taiwan

Abstract

This paper aims to analyze China’s Taiwan policy from the perspective of soft power. As Chinese economy developed, China used the appeal of its huge market and economic opportunities to attract the Taiwanese into seeking unification. China expected that the economic benefits might increase Taiwanese favorable attitude toward China. By using 2008 survey data, we attempt to figure out whether and to what extent China’s economic approach to Taiwan was successful. In the 2008 presidential election, the DPP was defeated by the pro-China KMT, which suggested extended economic exchange with China. As such the KMT’s success can be interpreted as the Taiwanese wanting extended economic exchange with China, does this result show that China’s soft power approach was successful? The findings in this paper do not provide this expected result. Instead, we suggest that China’s soft power strategy has not been as successful and that national identity proves to be the determinant in deciding Taiwanese attitudes toward China.