Power And Dollar

Pacific Forum CSIS’ article “Is Taiwan ‘over’? I think not” by Dr. Sutter of Georgetown

The suggestion that if Taiwan increases more FDI it may help expand its diplomatic space depends on the ability to attract FDI.  The very first thing for a FDI decision is political stability.  If Taiwan cannot be proven politically stable, then there is a high premium on the political risk with this investment.  Taiwan continues to have difficulties to participate in any international body due to Mainland China’s diplomatic pressure.  Taiwan also has fewer and fewer chips to conduct its affairs with any small country, which tool is suggested in the article.  They key point in the article is that Taiwan needs to manage its relationship well with Mainland.  And that is pretty much everything there is about Taiwan. 

Taiwan’s relationship with Mainland is dependent on its progress toward unification.  This progress will loosen up the leash from Mainland, but by no means independence.  The difference I point out is: attracting FDI, western relationship management, and Mainland relationship management are not three independent items on a to-do list.  There is just one item on the to-do list: Mainland relationship management.  The other two will be a consequence of the Mainland relationship management. 

The Taiwan separatists are a group of people much smaller than the core DPP supporters.  However, an outright unification would lose the appeal of any president, however corrupt free he appears to be, however great his platform is and however great an administrator he is.  Unfortunately, the politicians who are more adept to manage the separatist sentiments are not quite there on the stage.  And Chen is proven to be unfit in this category.  So, it will take more time to train a new generation of politicians. 

Given Ma had been stationed in Hong Kong and Hsieh has never been worked outside of Taiwan, Ma will be more able to manage its relationship with Mainland.  Ma could have employed his relationship while stationed in Hong Kong to expose any negativity that DPP members may have in China.  For that, Ma may be truly practicing positive politics, ahead of Obama.


March 19, 2008 - Posted by | China, china politics, Current Affairs, Current Events, economics, election, opinion, politics, Taiwan


  1. The Cross-Strait relation must be managed is a good idea for the both-sides governments to walk out a dark toward the sun.However,the China rising is welcome by many Eastsouth-Asian countries presently,so that Taiwan make friends with China just in correspondence of the trend.
    In fact,many people in Taiwan do not bring a war between Taiwan and China.Thus,to make a relationship of friend by both-sides is key approach to avoid war and produce peace.The world have changed and the power’s structure of international community have changed that should make people change their perspective,especially in both-sides for their ideas of confrontation that is the heritage of Cold-war.Maybe the new relationship of both-sides can offer more contributions for the worldly and regional prosperity in thr new era.

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