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.     

Governmental policy preferences and foreign capital allocation: The case of China

This paper compares the determination of foreign direct investment and World Bank loans in China, with a focus on the role of its government. The statistical analysis reveals that World Bank loans responded sensitively to the major regional policy changes since the mid-1990s, but foreign direct investment did not. These findings pose an analytic challenge to the “strong” version of the state-centered approaches to the politics of economic development represented by the developmental state literature. However, they lend support for a “weak” version of the state-centered approaches developed by American political scientists Stephen Krasner and Theda Skocpol. He has taught comparative and international politics in Nankai University, China, Kent State University, and Walsh University. He is currently working on his dissertation about the political economy of foreign aid in China. The author wishes to thank Dr. Dennis Hart and Dr. Steven Hook and the three anonymous reviewers for their helpful comments on early versions of this paper. The author also wishes to thank Brian Juliao for his linguistic help.     

Understanding the Political Economy of Cross-Strait Security: A Missing Link

This paper explores how and why China has been perceived as an economic threat in Taiwan through an examination of Taipei’s post-Cold War economic policy with respect to the mainland. While Taipei’s restriction on trade and investment across the Taiwan Strait until mid-2008 was widely considered a failure by both opponents and supporters of closer cross-Strait economic ties, this analysis points to an overlooked function of Taiwan’s economic policy that was not just about tackling the problems of the security externalities or promoting the island’s economic development. What appeared to be an ineffective policy can be understood as a successful boundary-drawing practice that discursively constituted a vulnerable Taiwan under Chinese economic threat, hence conducive to the (re)production of Taiwanese national identity.     

Chinese MNCs as China’s New Long March: A Review and Critique of the Western Literature

Chinese outward foreign direct investment (COFDI) has captured the imagination of international business academics, journalists, and analysts of Chinese foreign economic policy. While these students of COFDI have added greatly to our knowledge, they have not adequately considered the politico-economy of COFDI. Specifically, they have not sufficiently evaluated the degree to which COFDI is driven by political versus economic considerations, the extent to which political considerations influence the overseas operations of Chinese multinational corporations (MNCs), or the political ramifications of COFDI for host countries, international institutions, or China’s interactions with third parties. Reviewing the Western literature, this article provides useful background information about COFDI, distills two general schools of thought about the politico-economy of COFDI—i.e., the “Beijing as Puppeteer” camp and the “Business of Business is Business” camp, and highlights a number of shortcomings with each. As well, it suggests a number of ways in which the extant literature can move forward and makes clear the importance of tracking the development of Chinese MNCs.     

Enigma of all enigmas: Capitalist takeover? Assessment of the post-mao economic transformation

Post-Mao’s economic reforms have led many China analysts to observe that post-Mao China has been moving toward capitalism or “capitalist takeover” has occurred in post-Mao China. This observation has a significant implication both for the US foreign economic policy and in the study of regime change in post-Mao China. The purpose of this article is to revisit and reassess the economic transformation in post-Mao China to obtain a holistic understanding of the central reality in post-Mao China on the one side, while on the other to rebut the assertion of “capitalist takeover” in post-Mao China. Through a systematic survey of party documents, policy statements, leaders’ speeches, official newspapers and magazines, general academic studies on the post-Mao reform in English and in Chinese, this article examines the post-Mao economic transformation along the three key empirical dimensions in terms of systemic change: the existence of capitalist elements, the ownership structure, and the role of the market in the Chinese economy. The findings based on fresh empirical evidence suggest that China has not made any significant change from communism toward capitalism in any of those fields despite the considerable change made in the past 20 years. Sujian Guo was a former policy analyst at the Party Central Committee during 1987–1991. He is currently a Ph.D. candidate in Political Science at the University of Tennessee, Knoxville, writing a dissertation entitled “The Totalitarian Model Revisited: Assessing the Post-Mao Regime Change.” His areas of specialization are Comparative Politics, International Relations and Political Methodology. His research interests have focused on comparative communist and post-communist studies, democratic transition/democratization, regime change in post-Mao China, China/Asian politics. His publications include numerous articles in some of the above areas. His most recent articles appeared inCommunist and Post-Communist Studies, Issues & Studies, andJournal of Northeast Asian Studies.     

“Performance Legitimacy” and China’s Political Adaptation Strategy

The CCP government has adopted a very pragmatic strategy of “performance legitimacy” since China began its reform. It means that the government relies on accomplishing concrete goals such as economic growth, social stability, strengthening national power, and “good governance” (governing competence and accountability) to retain its legitimacy. While it is able to attain considerable domestic support by implementing this strategy, it has no particular interest in pursuing democratization. This chapter tries to make sense of the main reasons why it has adopted this strategy and to evaluate the political and social outcome of its policies. The chapter intends to discover if China’s adaptation strategy is a “path dependent” decision, and if it will function as a potential catalyst for significant political change in the future. The chapter also explores what the Chinese government has achieved through its adaptation strategy and what and why it has been unwilling or unable to do to obtain an “original justification” of power. Zhu skillfully travels back and forth between the terrains of theory and practice to make better sense of legitimacy and governance in China’s experiences.     

To Build A “Harmonious World”: China’s Soft Power Wielding in the Global South

This study attempts to answer a new but important question in China’s foreign policy— how Beijing has wielded its soft power to construct its ideal of international order in the age of China’s rise. Before empirical analyses, this study tries to set up a conceptual framework on the relations between the idea of “harmonious world” and China’s soft power wielding in its rising process. Within this framework, this study examines a rising China’s foreign policies towards three targeted regions in the global south—Africa, East Asia, and Latin America. On the one hand, due to Beijing’s carefully-designed and soft power-based foreign policies, the global south has become an increasingly harmonious environment for Beijing to cultivate a favorable national image, exert its political influence on regional affairs, benefit its own domestic economic developments, etc. On the other hand, some problems such as the so-called “China’s New Colonialism” and the increased vigilance from the other powers have already began to challenge Beijing’s harmony in those regions. Sheng Ding is assistant professor of political science at Bloomsburg University. He received both his masters and doctoral degrees from Rutgers. His research interests include soft power in international relations; transnational identity in globalization; information technology and world politics; politics in Pacific Asia; Chinese politics and foreign policy; U.S.-China relations, etc. His research articles have been published by Pacific Affairs, Nationalism and Ethnic Politics and East Asia: An International Quarterly. The author would like to thank the anonymous reviewers for their useful comments on the draft of the paper.     

Leadership transition and Chinese foreign polic

This essay examines the nature of China’s leadership transition, contending perspectives on Chinese foreign policy, and new foreign policy orientation. By examining leadership transition and new policy development, this essay demonstrates change and continuity in Chinese foreign policy. For analyzing new policy orientation, the following points require special attention. First, the fundamental goal of Chinese foreign policy is to create a peaceful environment for socioeconomic development. Second, “do not seek enemy” has become an essential part of China’s foreign policy. Third, pragmatism and professionalism are becoming key features of Beijing’s diplomacy. Finally, China’s new leaders are facing enormous domestic and international challenges. They must learn to balance domestic and international concerns in order to achieve peace and development. He is the author ofStates and Markets: Comparing Japan and Russia, co-author ofAmerican Foreign Policy and U.S.-China Relations, and co-editor ofNew Directions in Chinese Politics for the New Millennium. He has recently editedChinese Foreign Policy in Transition (New York: Aldine de Gruyter, forthcoming). The author would like to express his appreciation to William Dorrill, He Li, Lucian W. Pye, Wei Tang, Zhiqun Zhu, and two anonymous referees for helpful comments. An earlier version of the paper was presented at the Annual Meeting of American Political Science Association in August 2003.     

Chinese considerations of "economic security"

This paper is a preliminary study of Chinese considerations of China’s “economic security”, a notion that gained currency in China-based Chinese scholars’ research on China’s international relations in the 1990s. Among other things, such considerations reflect Chinese scholars’ acceptance of Western Realist/Nationalist convictions about the international political economy. The paper also finds that Chinese concerns about what the international political-economic environment holds for China’s approach to national greatness through economic growth by continuing to interact with the rest of the world, while not unfounded, are more ideology-driven than fact-based. This tendency contrasts sharply with Japanese notions of “economic security,” which have greatly influenced industrial restructuring in Japan and Japan’s international economic/security policies Japan since the term came into being in the 1970s.     

The “Role” of Nationalism in Chinese Foreign Policy: A Reactive Model of Nationalism & Conflict

A growing literature has sought to address the question of Chinese nationalism, and particularly whether or not its rise over the last decade could make China more prone to international conflict. Yet these discussions have often not been well grounded in either theories of nationalism or international relations (IR) theory. This paper will seek to fill this gap by using a constructivist approach to examine how nationalism is constituted by the interaction of states. By doing so, it will be argued that Chinese nationalism can best be understood as a reactive response to international events rather than domestic political manipulation. Michael Alan Brittingham is a visiting assistant professor in the Department of Political Science and International Studies at McDaniel College. He has previously taught at the University of Louisville. In 2005, he completed his dissertation entitled, “Reactive Nationalism and Its Prospects for Conflict: The Taiwan Issue, Sino-US Relations, & the ‘Role’ of Nationalism in Chinese Foreign Policy” in the Department of Political Science at the University of Pittsburgh. His current research interests include international relations theory, Chinese foreign policy, and nationalism.     

What was all the shouting about?: Strategic bargaining and protest at the WTO Third Ministerial Meeting

This article challenges key aspects of theories on norms evolution, transnational advocacy, and social movements. It demonstrates that the “emergence” phase of the “norms life cycle” model (Finnemore and Sikkink 1998) is more internally contested than currently interpreted. It develops two alternatives to the “boomerang” model of transnational advocacy (Keck and Sikkink 1998). It highlights and explains differences—rather than similarities—in the framing strategies of actors involved in globalized protests. It explores the influence of several key “microsociological factors” (Giugni 2002) on the evolution of those stragegies. Empirically the article focuses on the World Trade Organization's Third Ministerial meeting at Seattle in 1999. It analyzes why and how social movement actors framed different interpretations of the human rights at stake in the context of international trade. Framing innovations may have had short-term strategic value at Seattle, but did not lead to a unified understanding of human rights, either among activists themselves or among the government and corporate actors they sought to influence through protest.     

Governing under advanced liberalism: sport policy and the social investment state

Since the election in 1997 of a New Labour Government in the United Kingdom, a growing number of analyses have provided insights into, and critiques of, what has been termed the “social investment state”. To date, these analyses have interrogated particular developments and distinct issues in a number of key social welfare policy-related sectors, including education, citizenship, the family, and poverty/employment. Notable by its absence, however, is the contribution that policies for sport and physical activity are now playing in the realisation of New Labour’s social investment strategies. This article therefore interrogates and registers the growing salience of sport policy interventions for the construction of a social investment state within the broader political context of governing under “advanced liberal” rationalities. The “active citizen”, and children and young people, in particular, are valorised and appear centre-stage as the focus for these interventions. This child-centred focus is problematised, as is the argument that, under prevailing political rationalities of advanced liberalism, government “steers” rather than “rows” and “enables” rather than “commands”. Under these conditions, while children are deemed deserving of investment, there may be other groups who are deemed less deserving, for example, older people who, unlike children and young people have little currency in a future-oriented world.

Taiwan’s power reconfiguration and its impact on cross-strait relations

This paper explores Taiwan’s power reconfiguration resulted from the 2000 presidential election and its implication for the perplexed cross-Strait Strait relations. It looks back at Taiwan’s party transformations on the part of the Kuomintang (KMT) and the Democratic Progressive Party (DPP) over the past decade, discusses several important factors directly related to the victory of the DPP, and analyzes Taipei’s post-election political arrangements and conciliatory gestures toward Beijing. The paper concludes that given the political disparity between mainland China and Taiwan as well as the transitory nature of Taipei’s new government, Beijing will continue its “wait and see” policy toward Taipei, hence the chance for political dialogue between the two sides is slim in the foreseeable future. He served as President of the Association of Chinese Political Studies from 1998 to 1999. He writes on Chinese politics and cross-Taiwan Strait relations. Most recently, he co-edited Transition toward the Post-Deng China (forthcoming in 2001) and Prospects for Cross-Taiwan Strait Developments (2000). He received a Ph.D. in political science from Pennsylvania State University (1997). Gang Lin is Program Associate at the Woodrow Wilson Center’s Asia Program. This article reflects the author’s personal viewpoints only.     

Bush, China, Taiwan: A triangular analysis

This paper reexamines American policy toward China, Taiwan, and their ambivalent bilateral relationship, focusing on the period since Washington’s shift from strong (but not unconditional) support of Nationalist China to the role of balancer in the early 1970s, particularly on the most recent period under George W. Bush. We analyze the relationship from a strategic triangular perspective. The China-Taiwan-US relationship is triangular in the sense that each actor’s relations with the other two depend on its relations with the third. It is strategic in its focus on security. The United States has been the consistent “pivot” of this triangle, having better relations with both “wings” than they have with each other. Washington has retained this structurally advantageous position partly because of its disproportionate strategic weight, and partly because of the inherent difficulties Taipei and Beijing have had forging a cooperative bilateral relationship. This structure has been quite stable since the Cold War, as Washington has periodically shifted its balance from one wing to the other without altering the triangle’s basic configuration. Yet so long as the configuration is maintained, the basic problem on which the triangle is based — the contested independence of Taiwan — cannot be resolved. This creates a sense of national identity frustration that will continue to generate attempts at resolution, either by Taiwan’s declaration of independence or China’s forced reunification (or both). editor ofAsian Survey, has written or editedSino-Soviet Normalization and Its International Implications (1992),China’s Quest for National Identity (with Samuel Kim, 1993), and many other analyses of Chinese domestic and foreign policy. His most recent book (with Haruhiro Fukui and Peter N.S. Lee) isInformal Politics in East Asia (Cambridge, 2000).     

China’s Harmonious World: Beyond Cultural Interpretations

A culture “specter” is haunting the ongoing discourse regarding China’s declared policy of “peaceful rise” for a “harmonious world.” While some Western scholars “cherry-pick” “evidence” of China’s aggressiveness from Confucius legacies, the same cultural heritage is heavily tapped by many Chinese scholars to interpret the current policy of striving for internal and external harmony. Both seem to ignore, though to different degrees, the historically specific political environment, within which the cultural elements function and interact with other socio-political variables. China’s current pursuit of harmony is possible and desirable only at a time when China is able to achieve sustained sociopolitical stability (30 years) in the past 160 years and after its protracted encounter and experiment with Western liberalism, Marxism and capitalism. Although it has not explicitly rejected any of these Western ideologies, China has tested the limits of all of them—hence China’s search for its own identity and policy alternatives at the onset of the new millennium. It is toward a more historical and holistic explanation that this paper constructs the political space and historical trajectory of China’s search for modernity and for itself in the past two centuries and into the future. Yu Bin is Professor of Political Science and Director of East Asian Studies at Wittenberg University, Ohio, USA; Senior Fellow at Shanghai Institute of American Studies; analyst on Russian-China relations for Pacific Forum (CSIS) in Honolulu, Hawaii; and former president of Association of Chinese Political Studies (1992-94). Yu is the author and co-author of several books including the most recent ones: The Government of China (Stockton, NJ.: OTTN Publishing, 2006); Power of the moment: America and the world after 9-11 [Shunjian de Liliang: 9-11 Hou de Meiguo Yu Shijie] (Beijing: Xinhua Chubanshe, 2002); and Mao’s Generals Remember Korean (The University Press of Kansas, 2001). He has published more than 60 articles in journals including World Politics, Strategic Review, Asian Survey, International Politics Quarterly (Beijing), The China and Eurasian Forum Quarterly, International Journal of Korean Studies, Harvard International Review, Comparative Connections, etc.     

The China Code

China is evolving—it is becoming modern and international—but its trajectory will never intersect with the West’s. Fortunes have waxed and waned over thousands of years, but Chinese civilization has remained apart. Enduring fundamentals—morality rooted in stability, anti-individualism and a micro-analytic, balance-obsessed worldview—both fuel contemporary growth and preclude China’s ascendance as a superpower capable of projecting values abroad. A unifying “Confucian Conflict” between trenchant ambition and diffused anxiety also explains the actions and attitudes of ordinary Chinese people. This “street level” article articulates an “insecure or safe” continuum of twelve quintessentially behavioral characteristics that are observed in all realms of contemporary life including diplomacy, business, consumer behavior and social structure. They are: Ritualistic Observation, Robotic Depersonalization, Hierarchical Regimentation, Anxious Self-protection, Trust Facilitation, Pragmatic Elasticity, Incremental Progression, Released Repression, Confidence Projection, Epic Ambition, Scaled Mobilization and Joyful Celebration.     

Independent Candidates in China’s Local People’s Congress Elections

In the Chinese political system, according to the constitution, the people’s congresses at the primary level are the only institution which the voters can directly elect. However, the Chinese Communist Party (CCP) tightly controls the “direct elections” and takes every measure in the elections to prevent grassroots power from entering even the primary-level people’s congresses. In recent years, grassroots power has kept struggling for its legal rights in the “direct elections” held in a few localities. The conflicts between the grassroots power and the authoritarian party in the “direct elections” have become an interesting political phenomenon, a subject deserves close observation and research. This paper studies the background of the independent candidates, their motivations and behaviour in elections. The paper also examines the party’s control in the elections and thus exposes the true nature of China’s people’s congress “direct” elections. The paper argues that independent candidates can have little impacts on China’s political structure at the current stage because of the party’s tight control, but their political participation has the most democratic value, compared with the “reforms” instigated and carried out by the CCP.     

China’s “Radicalism at the Center”: Regime Legitimation through Climate Politics and Climate Governance

The article examines whether there is reciprocity between the legitimating effects of China’s regime at home and abroad and how global governance and legitimacy interact in the case of China. This is done through an analysis of Chinese climate politics and China’s engagement in international climate negotiations and governance, especially its behavior during and after the Copenhagen Climate Summit in December 2009 and the Chinese regime’s efforts to legitimate this behavior. While China’s role in international climate governance was disputed at the Copenhagen Summit, China contributed constructively to brokering a deal with significant implications for a new climate governance architecture suiting China’s preferences and being aligned with China’s core interests. China defended the procedural logic of the current global climate governance framework and managed to contain institutional change. Based on Anthony Giddens’ proposition about “radicalism at the centre”, it is argued that China’s national and international discourse on and actions associated with climate change and the international negotiations about the new climate governance architecture seem to be able to reinforce each other and may well have a mutual legitimacy augmenting effect for the ‘radicals at the centre’ of the Chinese regime, provided that they ensure consequential logic through targeted reduction of GHG emissions and a “green transformation” of the economy.     

Impact of trade and investment on income surge in Bangladesh: Evidence from trade liberalization regime

Trade and investment are crucial drivers of economic growth. Successful execution of trade and investment policy can elevate a developing country to a sustained growth path and make it self-reliant. Bangladesh implemented a trade liberalization policy in the 1980s, deviating much from its conservative trade policy. This article assesses the impacts of trade, investment in physical as well as human capital, and a few trade policy variables on income surge for the liberalized regime. The econometric analysis finds that export, import, and domestic investment stimulate income. The impact of foreign investment is not conducive. Public spending on education also contributes to the income surge. Among the policy variables, trade openness and currency depreciation produce a beneficial impact. Population growth retards economic growth. The baseline results hold in the estimations involving several specifications of variables and testified as robust. The article views that a comprehensive approach to trade and investment policy would ensure the comparative advantage of trade and the well-being of Bangladesh.     

Beyond “Nonsense on stilts”: Towards conceptual clarity and resolution of conflicting economic rights

Many of the debates concerning the existence of economic rights obfuscate the meaning of the possession of a right to an economic good. In order to provide clarification, several theoretical questions must be probed. This essay explores each of these issues in order to demonstrate that greater conceptual clarity repudiates the arguments against the existence of economic rights. It also seeks to attenuate the vexing problem of necessary and painful tradeoffs between competing rights claims. The final portion of this essay heuristically demonstrates how greater conceptual clarity can aid us in dealing with complex policy issues involving competing rights claims. The phase “Nonsense on stilts” is borrowed from Jeremy Bentham’s refutation pf “Natural” rights. Jeremy Bentham, “Anarchical Fallacies” in Human Rights, ed. A.I.Melden (Belmont, CA: Wadsworth, 1970), 30–31.