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The politics of greater China's integration into the global Info Tech (IT) supply chain
Authors:Merritt T  Cooke
Institution:Merritt T. Cooke *
Abstract:The most notable feature of the public ‘dialogue of the deaf’ taking place across the Strait separating Taiwan and China is its zero‐sum logic. This logic of one‐upmanship in political and security matters dictates that whatever benefits Taipei is detrimental to Beijing and vice versa. Commercial interaction between Taiwan and China, particularly in the broadly defined sector of information technology (IT), is arguably the more powerful driver of cross‐Strait interaction today. Two characteristics of this accelerating dynamic of commercial interaction across the Taiwan Strait are paramount: (1) its tight integration into a global IT supply chain; and (2) the extent of symbiosis by which all participants in this global supply chain depend on the worldwide vitality of this economic ecosystem. In interpreting what cross‐Strait economic integration in IT portends, political logic may be leading Taipei and Beijing along opposite paths to the same end‐point: the presumption that economic integration is undermining, and destabilizing, the cross‐Strait economic and political status quo. As a dominant player in global IT, the US has its own stake in a clear understanding of this globalization dynamic and in astutely maintaining its interests as the global IT supply chain continues to extend across the political fault‐line of the Taiwan Strait. Non‐partisan analysis of the logic of globalization suggests a different outcome for the cross‐Strait commercial dynamic than either Taipei or Beijing has publicly credited: its potential to mutually enhance economic prosperity and contribute long‐term to stabilizing cross‐Strait political interaction.
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