Stronger economic ties makes it more likely to keep to status quo and not push either sides/parties to do anything rash,lest all the investment that Taiwan has put in the nearby coastal economies (Fujian, Shanghai, Jiangsu, etc) suddenly collapses as well, potentially leading to disruptions up and down the rest of China’s economy.

Go to many of the suburbs of Shanghai (Xinzang) for instance. Large amounts of traditional characters and Taiwanese people helping to really build up the area with an infusion of Taiwanese businesses.

—The Chinese government knows well that the more economic ties that are established with Taiwan, the harder it is going to be for Taiwan to refuse reunification in the future.–

Well that is a point of Mainland goverment and KMT. From other side Taiwanese are failed to instal economical indepence by forcing of economical ties with other countries around Taiwan. I am woundering all time when i read that taiwanese are going to enslave their economy with China instead to instal links with India, Australia, Japan and other rivals of China in Asian-pacific area. (i will bet that Vietnam and combodia will praise taiwanese firms for investming there. aside a fact that those countires have deeper wages than China)

Thank you for your comments. I checked out your blog, http://michaelturton.blogspot.com/ and you seem to be very well informed on the current situation between Taiwan and China. I appreciate your input.

I still stand by my words regarding the economic reasons that have brought China and Taiwan closer together. You stated that the relocation of Taiwanese industries to China has been “only for economic purposes.” I would submit to you that this outsourcing started bringing China and Taiwan closer together long before these direct flights were established. The Chinese government knows well that the more economic ties that are established with Taiwan, the harder it is going to be for Taiwan to refuse reunification in the future. The Taiwanese government recognizes the importance of maintaining ties for exporting goods as well as taking advantage of a cheap labor force.

Yes, the statistics that you provide are accurate in terms of Taiwan’s economic growth in the past few years but let’s not forget about the recession that occurred in 2001. That was not invented. While the economy has recovered, it is important to remember that close to 40% of Taiwanese exports (counting Hong Kong) go to China. What would the economy be like without that 40%? We also know that China is receives more direct foreign investment from Taiwan than any other country. Where would the Taiwanese economy be without this destination for investment?

No matter how much the KMT (better known as the Pan-Blue Coalition these days) has ‘manipulated’ the economy to push forward their agenda on closer ties to China, the reasons behind the closer ties are still related to economics. The money is just too good. It’s the same situation between the US and China. We have ignored the issue of human rights in China for many years now because the trade is just ‘too good to pass up.’ Thus, Taiwan does need China in the sense that its economy has greatly benefited from its relationship with the Mainland.

But the stakes are high for Taiwan; it might as well be a fish eagerly swimming for the worm bait. Of course China wants to strengthen economic ties with the Taiwan but at what cost to Taiwan? The ultimate goal for China is unification. In the end, what is going to be more important to Taiwan? Securing the future of their economy or maintaining this quasi independent state? Based on how the rest of the world seems to operate, I predict that in the end, the love of money will triumph over political idealism.

But the move to China was only for economic purposes, as no one wants to become part of that state. It is not “economics” that is bringing Taiwan closer to China but the deliberate policy of the KMT to annex the island to China.

Also, “return” is incorrect. Taiwan was never part of China; the idea that Taiwan is China’s “sacred national territory” is a post-WWII myth.

Michael