China's Economic Policy Towards Taiwan: An Empirical Analysis

Abstract

This article presents the actual data on the economic exchanges across the Taiwan Straits, through meticulous collection and tabulation from various sources. The basic analysis of the statistical data also highlights the broad trends and issues involved. The expansion of economic exchanges across the Taiwan Straits has strengthened Chinese leaders confidence as they expect that economic integration will help to provide the foundation for peaceful reunification. This confidence in turn will persuade Chinese leaders to reduce their dependence on military means. The Chen Shui-bian administration, on the other hand, still perceives the increasing economic dependence of Taiwan on Mainland China as an erosion of Taiwan’s long-term security.