Chinese Economic Coercion Against Taiwan: A Tricky Weapon to by Murray Scot Tanner

By Murray Scot Tanner

Because the early Nineteen Eighties, the crossstrait dating among Taiwan and mainland China has exploded, pushed via monetary and political reforms. accordingly, every one could endure nice monetary soreness and dislocation within the occasion of a massive disruption in that quickly turning out to be monetary dating. This monograph analyzes the political impression of that dating and evaluates the clients for Beijing to take advantage of it by means of making use of monetary coercion opposed to Taiwan.

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From Beijing’s perspective, a crucial objective would likely be to deny Taiwan a victory in its efforts to establish its formal independence by deterring other countries from officially recognizing Taiwan or admitting its government to international organizations with status equal to a sovereign country. Beijing may well hope that if Taiwan “throws a party and nobody comes” that it may soon rescind its policies and seek a negotiated deal—under conditions that would be dramatically more advantageous to Beijing.

57, Summer 2003, pp. : Princeton University Press, 1985. 3 Hufbauer, Schott, and Elliott, 1985, p. 10. 4 It includes deliberate efforts by the initiating government to use its economic relations to commit economic disruption or destruction against the targeted economy or efforts to harass businesspeople and economic officials of the targeted territory. 5 The initiating government’s goal in disrupting (or threatening to disrupt) normal economic relations is to achieve one or more of the following objectives: 1.

The strategic importance and “substitutability” of the products or economic activities sanctioned. Embargos and asset seizures sometimes fail because the embar- goed goods or assets are not sufficiently important to the target country to make it worthwhile to the target to comply with the initiator’s demands. Many other efforts at coercion fail because the target country is able to weather the initial blow and soon make adjustments that undermine the long-term effectiveness of the sanctions by finding substitute products, sources, or markets for the sanctioned goods and activities.

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