Dilemma between Prosperity and Autonomy: International PoliticalEconomy of Taiwan during the Post-Democratization Period

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This study offers an analysis of the major political and economic trend surrounding the relations between Taiwan and the mainland China under president Ma Ying-jeou in Taiwan and president Hu Jintao in the PRC. President Ma sought to rebuild a stable relationship, and the Cross-Strait economic relationship has deepened rapidly, and Taiwan’s economic dependence on the mainland China has sharply risen. On the other hand, Taiwanese identity in Taiwan has been strengthened through frequent Cross-Strait exchanges. Moreover, Taiwan formally announced that there was no basis for Cross-Strait action on Diaoyutais, and chose Japan as a counterpart of cooperation, not the mainland. These outcomes imply the possibility that mutual interdependence between divided nations could not necessarily cause political integration.