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ID: 124644

China's economic offensive and Taiwan's defensive measures: cross-strait fruit trade, 2005-2008 / Wei, Chi-hung

Wei, Chi-hung	Journal Article
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2013.

Summary/Abstract

This article explains how Taiwan's Democratic Progressive Party (DPP) administration was able to restrict cross-Strait fruit trade and resist China's "fruit offensive" in a democratic setting. During 2004-2005, China implemented various preferential policies for the importation of Taiwanese fruit and wooed Taiwanese farmers in the rural south, where political support for the DPP was concentrated. However, trade statistics show that cross-Strait fruit trade only increased slightly, making up just 4 or 5 per cent of Taiwan's total fruit exports during 2005-2008. I argue that focusing solely on regime type ignores the formal and informal policy instruments a democratic state can wield to manage its commercial ties with, and resist economic offensives from, other states. Cross-Strait fruit trade was limited because the DPP used legal as well as corporatist informal policy instruments to resist China's fruit offensive. I conclude that state-society institutional relations explain cross-Strait economic relations and economic statecraft better than regime type alone.

Key Words

Corporatism ; Economic Statecraft ; Cross - Strait Economic Relations ; Fruit Trade ; State - Society Institutional Relations ; State – Society Institutional Relations

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ID: 087426

Japanese-Taiwanese joint ventures in China / Ito, Shingo

Ito, Shingo	Journal Article
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Publication

2009.

Summary/Abstract

Joint ventures in China between Japanese and Taiwanese firms have been increasing since the end of the 1980s. However, the literature suggests that the performance of joint ventures with third-country-based firms is the lowest among all types of joint ventures. The reasons attributed are that this type of joint venture lacks local access through a local partner and entails higher organizational costs, stemming from the large cultural distance between investing parties at both the national and corporate levels. Proving otherwise, this article preliminarily shows that the termination rate of Japanese-Taiwanese joint ventures in China is not necessarily high compared with that of overall Japanese investments in China. Joint ventures with Taiwanese companies improve local access for Japanese partners by making it easier to: (1) access Taiwanese affiliates with a large economic presence in China; (2) facilitate smooth entry into the local market by utilizing distribution networks that Taiwanese parties possess there; and (3) gain local information from Taiwanese partners whose language and culture are similar to China's. The article also suggests that organizational costs are reduced because of the mutual trust built as a result of the long history of collaboration between Japanese and Taiwanese partners.

Key Words

Foreign Direct Investment ; Trust ; International Joint Venture ; Ownership Structure ; Cross - Strait Economic Relations

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