State versus market: Taiwan’s trade, investment and aid policies in mainland China and southeast Asia in the post-Deng period

For many years Beijing has sought to isolate Taiwan from the world community, threatening to sever relations with any country that tries to establish or strengthen relations with Taiwan. As a result, economic diplomacy has become a tool in conducting Taiwan’s international affairs. Political and economic considerations are thus intermingled in Taiwan’s pursuit of its foreign economic policy. This paper does not intend to go into a traditional debate on the conflict between the state (politics) and the market (economics) in conducting a country’s foreign economic relations. Rather, it attempts to coordinate the merits of both state and market and assumes that an understanding of their interaction is useful in examining Taiwan’s foreign economic relations in the post-Deng period. The empirical study of this paper will focus on mainland China and the Southeast Asian countries. Southeast Asia is a region where no country maintains diplomatic relations with Taiwan. It is difficult indeed for Taiwan to develop official political ties with Southeast Asian countries because of their geographical proximity to mainland China, which tends to make them subject to pressure from Beijing. Thus, whenever Taipei conducts its economic communications (such as in foreign trade, foreign direct investment and foreign economic assistance) with mainland China and those Southeast Asian countries, political and economic factors are always taken into account by decision-makers.     

Normalizing Sino‐Indian relations

Realism and neoliberalism, two schools of international relations theory, provide contending explanations for state behaviour in the international system. The latter believes that interstate cooperation will create institutions and regimes for the peaceful settlement of conflicts. The former argues that only ‘self help’ — the building of individual state military capabilities — can assure that state interests will be protected. A review of Southeast Asian security policies demonstrates that both paradigms coexist as the region's members enhance their individual military capabilities because of territorial disputes with neighbours, while simultaneously entering into new collaborative arrangements such as the ASEAN Regional Forum. The ARF has begun as a venue for discussions and reassurance among Southeast Asian states and external powers in hopes that the zero‐sum character of pure realism may ultimately be transcended.     

Competitive diplomacy in Southeast Asia

A series of diplomatic manoeuvres by China and Japan in Southeast Asia has underlined their increasing competition for regional influence. While there is inherent strategic value to the promotion of ties with Southeast Asia's dynamic economies, the moves are also reflective of their common national-rejuvenation programmes.     

ASEAN and human rights: resisting Western pressure or emulating the West?

Abstract

Observers of Southeast Asian affairs commonly assume that the members of the Association of Southeast Asian Nations (ASEAN) are reluctant to pursue liberal agendas, and that their main concern is to resist pressure from Western powers to improve their human rights practice. This article, however, argues that such a conventional view is too simplistic. The Southeast Asian countries have voluntarily been pursuing liberal agendas, and their main concern here is to be identified as ‘Western’ countries – advanced countries with legitimate international status. They have ‘mimetically’ been adopting the norm of human rights which is championed by the advanced industrialized democracies, with the intention of securing ASEAN's identity as a legitimate institution in the community of modern states. Ultimately, they have been pursuing liberal agendas, for the same reason as cash-strapped developing countries have luxurious national airlines and newly-independent countries institute national flags. Yet it should be noted that the progress of ASEAN's liberal reform has been modest. A conventional strategy for facilitating this reform would be to put more pressure on the members of ASEAN; however, the usefulness of such a strategy is diminishing. The development of an East Asian community, the core component of which is the ASEAN–China concord, makes it difficult for the Western powers to exercise influence over the Southeast Asian countries. Hence, as an alternative strategy, this article proposes that ASEAN's external partners should ‘globalize’ the issue of its liberal reform, by openly assessing its human rights record in global settings, with the aim of boosting the concern of its members for ASEAN's international standing.     

Stay or exit: How do international nongovernmental organizations respond to institutional pressures under authoritarianism?

International nongovernmental organizations (INGOs) are increasingly important players in global politics and development. However, they are undergoing significant adaptations as governments worldwide have instituted restrictions to regulate their activities. What explains the various ways in which they respond to these institutional pressures? In our study of INGO responses to a new restrictive law in China, we identify four strategic responses with varying levels of compliance: legal registration, provisional strategy, localization, and exit. The institutional pressures—strategic responses link is influenced by INGOs' adaptive capacity, which is in turn shaped by an organization's issue sensitivity, value-add, government ties, and reputational authority. The integrated framework we develop for INGO strategic responses can shed light on state-INGO relations in other countries, many of which are subject to increasingly stringent regulations and a closing political environment.     

Sudpolitik: the political economy of Taiwan's trade with Southeast Asia

Abstract

In December 1993 the Taiwan government adopted a policy called nanjin zhengce or sudpolitik, a policy aimed at diverting part of Taiwan's trade and investment flows from China to Southeast Asia. This paper addresses the following questions: what is sudpolitik? why adopt such a policy? what are the economic, political, and strategic considerations in the pursuit of this policy? which countries are its specific targets? how do the countries directly affected by this policy respond to it? The paper also discusses the issue of Taiwan's aid in connection with sudpolitik. While the effectiveness of the policy is far from clear at present, the paper concludes with four observations: Taiwan's trade and aid are beginning to intertwine; Taiwan's diplomacy is largely economically or commercially led; Taiwan has achieved some positive results in improving its relations with Southeast Asian countries; and, Taiwan has reached a new stage in its economic development whereby it needs to invest overseas in order to sustain its economic growth. Overall, sudpolitik represents a novel step in Taiwan's diplomatic practice.     

A harmonized Southeast Asia? Explanatory typologies of ASEAN countries’ strategies to the rise of China

Abstract

In the face of a rising China, some scholars have argued that ASEAN countries will choose to either bandwagon with or balance against China, while others believe they will respond with a more moderate policy known as ‘hedging’. In considering these options, ASEAN countries must take into account their individual interests within the economic and security structure of this region. In this research, we argue that each ASEAN country confronts divergent sets of security and economic relations with China, which play a major role in shaping their policy responses. We can characterize their responses into four quadrants. Each cell can be categorized in terms of a high or low degree of threat perception (HT or LT) from China, as well as a positive or negative economic expectation (PE or NE) with China. We thus hypothesize that ASEAN countries in the HT–NE situation will balance against China; those in the LT–PE situation will bandwagon with China; those in the HT–PE or LT–NE situations will hedge against China. Hypotheses are supported by three case studies, Vietnam–China (HT–NE), Cambodia–China (LT–PE) and Singapore–China (HT–PE) relations.     

South Korea and Sino-Japanese rivalry: a middle power's options within the East Asian core triangle

Abstract

South Korea is a middle power in a region where its scope of action can rise and fall quickly and diplomatic flexibility is needed. Neither realist responses to threats nor idealist trust in integration meet its needs for adjusting triangular ties with China and Japan, as their relations become the principal great power divide in Northeast Asia. Its optimal choice is as a facilitator biding its time when tensions over both security and national identity clashes are intense, while preparing for opportunities. Four conditions would give it a favorable environment: forward-looking foreign leadership; security challenges brought under some control; subsiding preoccupation with national identities; and its own strategic planning with care not to overreach. Multiple possibilities emerge if it can rebuild ties with Japan as part of a triangle with China as well as one with the United States and also synchronize ties with China to other ties. Even amidst recurrent tensions, the core East Asian triangle offers Seoul a chance to take advantage of changing dynamics in the world's most ascendant region.     

The non-traditional security concept and the EU-ASEAN relationship against the backdrop of China's rise

The rise of China raises questions about international order and whether traditional power structures will be transformed peacefully or confrontationally. Actively engaged in trade and investment activities with its Southeast Asian neighbourhood, China has been exerting political influence on many Southeast Asian states, cleaving regional cohesion and raising levels of tensity in the region. This article presupposes that within so-called non-traditional security (NTS) areas, there is room for China and Southeast Asian countries to circumvent the political tensions, to some extent. It presumes that NTS issues facilitate greater interaction with/on China for Southeast Asian states, including enhanced European Union (EU)-Association of Southeast Asian Nations (ASEAN) engagement on China. Recognising the increasing and rather underexplored importance of the NTS perspective on the official and scholarly levels, this article delves into the rhetoric of NTS from a European perspective with particular view towards the South China Sea issue to demonstrate the use and utility of the NTS concept in the EU-ASEAN context against the backdrop of China's rise.     

东南亚华人的身份、地位和权利问题

到20世纪80年代末,东南亚华人基本完成了从华侨社会向华人社会转变的过程,绝大多数都加入了当地国籍成为各国的公民.东南亚华人身份的转变过程由于受到冷战时期的一些时局因素的制约变得复杂而曲折,转变过程的完成意味着长期以来使用的"华侨"称呼已经不能反映实际情况,同时学术研究和实际工作中也应该做出一些相应的调整.华人成为东南亚国家的公民之后,在有些国家可以享有充分的社会政治权利,而在有些国家则受到不同程度的歧视,处于一种二等公民的地位.华人的政治社会地位如何往往并非掌握在华人自身手中,因为除新加坡之外,在各国华人都是少数民族.     

The politics of history and historical memory in China-Japan relations

The current state of China-Japan relations is characterized by two seemingly contradictory developments adjacent to each other: while economic and cultural relations have experienced an unprecedented and continuous improvement since the 1980s, Chinese and Japanese public perceptions of each other have been deteriorating. This raises interesting questions. How do we explain this discrepancy and what are the sources of the increasing public animosity in China or Japan toward the other country? Can China and Japan maintain amicable relations and continue economic cooperation in spite of the enduring mistrust between their peoples? What is the role of public perception and memory of history in the foreign policies of East Asia? This paper addresses these questions, focusing especially on the last one — the role of history and collective historical memory in international relations and the interaction between public sentiment and government foreign policies. Through a detailed study of recent events and the issue of Japanese textbooks, the author argues that public perception of history can and should be guided toward more positive directions. Otherwise, it will be increasingly difficult to maintain amicable relations between the two countries, especially when new nationalism is on the rise in both counties.     

A history of sex and the state in Southeast Asia: class,intimacy and invisibility

This essay offers a history of international marriages that questions the definition of marriage and what it meant to belong, as a legal subject or citizen, to a colonial state in Southeast Asia. European imperial states deployed monogamous marriage alongside other weapons of empire as a justification for intervention into Southeast Asian societies. With monogamous marriage came also European notions of belonging that traced surnames and legal subject status (later citizenship) via husbands and fathers. The ramifications for individuals in international marriages between Asian women and European men are well known. However, the vast majority of ‘international marriages’ were not those between colonial Europeans and Southeast Asian women, but between Southeast Asian women and lower class Asian men from India and China. Colonial states ignored or failed to register these lower class intra-Asian intimacies because their unions did not threaten colonial rule so long as they ensured a continuous pool of labor and promoted the colonial economy. Unlike recent theories which argue for an omniscient state that penetrates into the personal lives of its populations, this essay maintains that states intensely regulated marriage and belonging for some subjects but not for others. This longstanding unevenness in the management of intimate unions provides a historical context for understanding shifts in the marital regimes of contemporary postcolonial states. Taking a long-term view, the essay asks if recent increases in international marriages might be better understood as spikes rather than as absolute increases resulting from ‘globalization’. A historical framework ties the rise and fall of international marriage to early modern trade patterns, imperialism's labor requirements, war, and the recent demand for labor that has arisen from low birth rates and economic changes. Each of these ‘events’ entailed a large-scale movement of populations which resulted in the development of intimate unions.     

Wake Up to Reality: Taiwan, the Chinese Mainland and Peace Across the Taiwan Strait

Relations between the Republic of China (ROC or Taiwan) and the People’s Republic of China (PRC or Chinese mainland) have improved significantly since 2008. However, this study suggests that it will be difficult for the two sides to sustain the momentum in cross-strait relations unless Beijing—and to some extent Taipei—begin to recalibrate their relationship in a more pragmatic way and adopt some new thinking on the concepts of sovereignty and the political status of the ROC. In short, they need to figure out a way to acknowledge the fact that both the ROC and PRC exist.     

Escaping the merchant/missionary dilemma: an imperial policy for the Asia-Pacific

The Asia policy of the Bush administration follows from two principles: its preference for ‘hub-and-spoke relationships’ led from Washington, and the restored priority of security issues over the mixture of trade interests and human rights that was the hallmark of the Clinton presidency. The initial focus of the administration on the restoration of political and strategic ties with old allies such as Japan, and on strategic competition, has been mitigated by another realistic approach: the need to seek new allies and partnerships. This policy was already evident towards India before September 11, 2001, but has been magnified with the onset of a coalition against terrorism, and almost as importantly, against the proliferation of weapons of mass destruction. The resumption of strategic and military ties with China, the priority of anti-terrorist cooperation over human rights issues with Southeast Asia, the increased support for India that is of more strategic value than America's tactical involvement with Pakistan, are developments that overshadow the US relationship with traditional allies such as Japan or the European Union. The major weakness of the Bush Asia policy, however, is its relative neglect of major economic and social issues in the region. Although support for some weakened ASEAN economies has increased, there is neither a more intense coordination of economic policies with Japan, in spite of initially declared intentions, nor a major economic and social strategy for Southeast and South Asia that would support the fight against terrorism.     

Chinese Diaspora as a Virtual Nation: Interactive Roles between Economic and Social Capital

This paper attempts to analyse how and in what ways the Chinese diaspora interacts with globalisation in Southeast Asia through their economic and social capital. It explores the theories of globalisation and contrasts them with the thematic changes of Southeast Asia studies, and it conceptualises the economic power, the geographical dispersal nature and the social networking of Chinese diaspora in order to understand how a virtual nation is being constructed. It then examines empirical studies of that economic power using the specific case of Indonesia; comparative studies of Chinese companies in Southeast Asian countries; and foreign direct investment in China from the Association of Southeast Asian Nations. Finally, it surveys the building of the virtual community through ethnicity, languages, associations and Confucianism, from which social capital has been generated among the Chinese diaspora in Southeast Asia.     

Southeast Asia in the study of international relations: The rise and decline of a region

Three features stand out from the literature on Southeast Asia's international relations, written over the last fifty years: the dominance of extra‐regional scholarship; an overwhelming emphasis on regional security, and a related preponderance of realist perspectives; and the appearance, consolidation, and ebbing of the perceived utility of Southeast Asia as a useful analytical region. During the 1990s, there has been a questioning of the realist assumptions which have underlain international relations writing on the region, and there has been increased emphasis on economic issues. Southeast Asians are making an increasingly important contribution to the study of their own region's international relations, though mainly in terms of policy‐oriented research. The most important recent development has been the questioning of Southeast Asia's usefulness as an analytical region, in view of the growing intensity of economic and security relations between Northeast and Southeast Asia.     

Explaining Taiwan's policies in the South China Sea, 1988–99

The current paper discusses Taiwan's policies in the South China Sea during the period 1988–99. These policies are discussed with reference to ‘realist’ and ‘non-realist’ theoretical approaches. The realist position regards Taiwan's South China Sea policies as an outcome of its relations with the People's Republic of China and the Southeast Asian countries. These policies are fashioned and implemented in a coherent way by a unitary state. Two ‘non-realist’ positions are identified. One focuses on influences from domestic political parties and party factions, bureaucratic segments and economic interests. The other emphasizes the impact of transnational alliances, mainly through oil business lobby groups allied with mainland Chinese partners. The investigation sustains much of the realist argument. It is, however, argued that party politics and bureaucratic infighting has had an independent effect on Taiwan's South China Sea policies, while the impact of oil business interests has been limited.     

The Expat Gap: Are Local‐Born Entrepreneurs in Developing Countries at a Disadvantage When Seeking Grant Funding?

Donor agencies and foundations use grants to stimulate entrepreneurial growth in developing countries. However, some practitioners have asked whether these grants tend to flow to expatriate entrepreneurs with ties to developed countries (where most grants originate), rather than to local entrepreneurs. This article tackles this question using a data set of 3,434 nascent ventures from 92 developing countries. The authors find that ventures with ties to a developed country are significantly more likely to raise grant financing and in more substantial amounts. Ventures with a founder born in a developed country are the most likely to receive grants, with a weaker effect when considering prior work experience in a developed country. This “expat gap” cannot be explained by differences in education level, prior experience, or ties to other developing countries. Donors seeking to support local entrepreneurs in developing countries should consider ways to make their recruitment and selection processes more equitable.     

Testing the China Threat paradigm: China's high-speed railway diplomacy in Southeast Asia

Vying for high-speed railway projects overseas has become a prominent feature of China's diplomacy in recent years, including in Southeast Asia. These efforts have been widely depicted within the premises of the China Threat narrative – as a part of Beijing's agenda to alter the power balance in Southeast Asia at the expense of the economic, political, and security well-being of countries in the region. This paper challenges such interpretations and concludes that these projects do not have either the intention or capacity to facilitate such a hostile and far-reaching agenda toward the region.     

Promoting eco manufacturing: an Australian case

• This paper analyses the communication campaign of a small industry plant, the Fuji Xerox Eco Manufacturing Center in Sydney, Australia. Disproportionably to its size, it has become a national and world leader in the push for waste free, sustainable manufacturing. The rarity of the case—a resource‐poor for‐profit organization taking the role of an influential advocate—helps to highlight the centrality of public relations in the promotional mix. I examine ‘remanufacturing’ not as a one‐off technical innovation, but as prolonged internal and external communication campaign. I also stress on the public character of internal communication, where public relations is instrumental from the start. I draft and discuss an alternative model of integrated marketing communications for small businesses and nonprofits. Integration happens here on personnel rather than organizational (interdepartmental) level. The more such organizations turn towards external causes and multiple publics—as in this case of industrial advocacy and public affairs—the more likely public relations transforms from a component into the organizing principle of the communication strategy.

Copyright © 2008 John Wiley & Sons, Ltd.