Chinese Economic Coercion Against Taiwan

Since the early 1980s, the cross-strait relationship between Taiwan and mainland China has exploded, driven by economic and political reforms. As a result, each would suffer great economic pain and dislocation in the event of a major disruption in that rapidly growing economic relationship. This monograph analyzes the political impact of that relationship and evaluates the prospects for Beijing to exploit it by employing economic coercion against Taiwan.

This article examines the ways China employs economic coercion to influence Taiwan, and the limitations of these tactics in influencing Taiwan’s domestic politics. Although there is ample research conducted on the broader theme of Cross-Strait relations, there have been fewer attempts at analyzing the variety of ways China uses economic coercion to impact Taiwan’s domestic politics. China’s growth in the past several decades has resulted in China becoming a dominant power in the global economic sphere. Meanwhile, it has become Taiwan’s largest trading partner. While there are a variety of tools China has employed, they have ultimately been met with limited success, as Taiwan has responded both proactively and reactively to mitigate vulnerabilities. Furthermore, the deepening of Taiwanese democracy and identity further exemplifies the weakness of China’s attempts to bring Taiwan within the sphere of direct influence, and public opinion continues to favor maintaining the status quo over reunification.

Despite apparently consistent statements in 4 decades, the U.S. ¿one China¿ policy concerning Taiwan remains somewhat ambiguous and subject to different interpretations. Apart from questions about what the ¿one China¿ policy entails, issues have arisen about whether U.S. Presidents have stated clear positions and have changed or should change policy, affecting U.S. interests in security and democracy. Contents of this report: (1) U.S. Policy on ¿One China¿: Has U.S. Policy Changed?; Overview of Policy Issues; (2) Highlights of Key Statements by Washington, Beijing, and Taipei: Statements During the Admin. of Nixon, Ford, Carter, Reagan, George H. W. Bush, Clinton, George W. Bush, Clinton, and Obama. A print on demand report.

Taiwan "is becoming the most dangerous flash point in the world for a possible war that involves the United States, China, and probably other major powers," warn Robert D. Blackwill, Council on Foreign Relations (CFR) Henry A. Kissinger senior fellow for U.S. foreign policy, and Philip Zelikow, University of Virginia White Burkett Miller professor of history. In a new Council Special Report, The United States, China, and Taiwan: A Strategy to Prevent War, the authors argue that the United States should change and clarify its strategy to prevent war over Taiwan. "The U.S. strategic objective regarding Taiwan should be to preserve its political and economic autonomy, its dynamism as a free society, and U.S.-allied deterrence-without triggering a Chinese attack on Taiwan." "We do not think it is politically or militarily realistic to count on a U.S. military defeat of various kinds of Chinese assaults on Taiwan, uncoordinated with allies. Nor is it realistic to presume that, after such a frustrating clash, the United States would or should simply escalate to some sort of wide-scale war against China with comprehensive blockades or strikes against targets on the Chinese mainland." "If U.S. campaign plans postulate such unrealistic scenarios," the authors add, "they will likely be rejected by an American president and by the U.S. Congress." But, they observe, "the resulting U.S. paralysis would not be the result of presidential weakness or timidity. It might arise because the most powerful country in the world did not have credible options prepared for the most dangerous military crisis looming in front of it." Proposing "a realistic strategic objective for Taiwan, and the associated policy prescriptions, to sustain the political balance that has kept the peace for the last fifty years," the authors urge the Joe Biden administration to affirm that it is not trying to change Taiwan's status; work with its allies, especially Japan, to prepare new plans that could challenge Chinese military moves against Taiwan and help Taiwan defend itself, yet put the burden of widening a war on China; and visibly plan, beforehand, for the disruption and mobilization that could follow a wider war, but without assuming that such a war would or should escalate to the Chinese, Japanese, or American homelands. "The horrendous global consequences of a war between the United States and China, most likely over Taiwan, should preoccupy the Biden team, beginning with the president," the authors conclude.

This work is an in-depth study of the threat posed by the Peoples' Republic of China to Taiwan's security and the probable international response in case of a conflict in the Taiwan Strait. Contents: Beijing's Relations with Taiwan, Parris H. Chang; The Use of Military Force Against Taiwan: Potential PRC Scenarios, Paul H.B. Godwin; U.S. Reactions to the PRC Use of Force Against Taiwan, Mark S. Pratt; International Legal Implications of a PRC Use of Military Force Against Taiwan, David J. Scheffer; The International Response, Harvey J. Feldman; Asian Responses to Chinese Pressures on Taiwan, Paul H. Kreisberg; The U.S. and the Changing East Asian Order: Implications for Taiwan's Ability to Deter Possible Threats from the Mainland, Robert G. Sutter; International Reactions and Responses to PRC Uses of Force Against Taiwan, Vernon V. Aspaturian; Principles of Deterrence in the Taiwan Strait, Martin L. Lasater. Co-published with the Center for East Asian Studies.

Introduction -- Techniques of statecraft -- What is economic statecraft? -- Thinking about economic statecraft -- Economic statecraft in international thought -- Bargaining with economic statecraft -- National power and economic statecraft -- "Classic cases" reconsidered -- Foreign trade -- Foreign aid -- The legality and morality of economic statecraft -- Conclusion -- Afterword : economic statecraft : continuity and change / Ethan B. Kapstein.

The global implications of China's rise as a global actor In 2005, a senior official in the George W. Bush administration expressed the hope that China would emerge as a “responsible stakeholder” on the world stage. A dozen years later, the Trump administration dramatically shifted course, instead calling China a “strategic competitor” whose actions routinely threaten U.S. interests. Both assessments reflected an underlying truth: China is no longer just a “rising” power. It has emerged as a truly global actor, both economically and militarily. Every day its actions affect nearly every region and every major issue, from climate change to trade, from conflict in troubled lands to competition over rules that will govern the uses of emerging technologies. To better address the implications of China's new status, both for American policy and for the broader international order, Brookings scholars conducted research over the past two years, culminating in a project: Global China: Assessing China's Growing Role in the World. The project is intended to furnish policy makers and the public with hard facts and deep insights for understanding China's regional and global ambitions. The initiative draws not only on Brookings's deep bench of China and East Asia experts, but also on the tremendous breadth of the institution's security, strategy, regional studies, technological, and economic development experts. Areas of focus include the evolution of China's domestic institutions; great power relations; the emergence of critical technologies; Asian security; China's influence in key regions beyond Asia; and China's impact on global governance and norms. Global China: Assessing China's Growing Role in the World provides the most current, broad-scope, and fact-based assessment of the implications of China's rise for the United States and the rest of the world.

This book aims to study China's economic statecraft in the contemporary era in a comprehensive manner. It attempts to explore China's approaches to using its economic, trade, investment, and financial power for the pursuit of its political, security, and strategic interests at the regional and global levels. The volume addresses three major issue areas in particular. The first issue pertains to how Beijing has used its economic clout to protect what it perceives as its 'core interests' in its external relations. Three cases are included: the Taiwan issue, human rights, and territorial dispute in the South China Sea. The second major area of inquiry focuses on how China has employed its economic power in its key bilateral relations, including relations with Japan, North Korea, the United States, and other states in the East Asian region. The third issue concerns China's economic statecraft in the global context. It addresses the impacts of China's economic power and policy on the transformation of the global financial structure, developments in Africa, the international intellectual property rights regime, and China's food security relations with the outside world.

Over the past two decades, China has increasingly employed economic coercion against countries across the world in response to various incidents. The practice of economic coercion exploits trade dependencies and poses a threat to the rules-based international system.This paper presents a case study of China’s ongoing economic coercion campaign against Lithuania in response to Vilnius seeking closer ties with Taiwan. The experience of Lithuania is noteworthy because it reveals Beijing’s evolving coercion tactics and provides important lessons for countries that may be targeted in the future.