The political economy of Taiwan's mainland policy

The emerging patterns of the cross‐strait interaction present a perplexing duality, revealing both the trends toward closer economic convergence and greater political divergence. Taiwan's mainland policy is both the manifestation and the catalyst of the two contradictory processes. It is the locus of confrontation of the various economic, social, and political forces that propels the two concurrent processes. It has been propelled by the epic changes in the global political economy, the market‐oriented reform in China, and Taiwan's economic restructuring process. It has also been prompted by the perceived challenges and opportunities brought about by the transition to the post‐Cold War era, the unraveling of structural conflicts between a status‐quo power (i.e., the US) and a rising power (i.e., the PRC) and by the politics of political succession within the CCP. In more immediate terms, it has been driven by the power struggle over political succession within the KMT, the bureaucratic process, the interest group politics, the partisan politics in both the electoral and legislative arenas, and the unfolding of the national identity crisis during Taiwan's recent transition to democracy.