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Edited by Lowell Dittmer Lowell by Edited FITFUL EMBRACE and China Taiwan Taiwan DITTMER | TAIWAN AND CHINA FITFUL EMBRACE Luminos is the Open Access monograph publishing program from UC Press. Luminos provides a framework for preserving and rein- vigorating monograph publishing for the future and increases the reach and visibility of important scholarly work. Titles published in the UC Press Luminos model are published with the same high standards for selection, peer review, production, and marketing as those in our traditional program. www.luminosoa.org The publisher gratefully acknowledges the generous support of the Sue Tsao Endowment Fund in Chinese Studies of the University of California Press Foundation. Taiwan and China Taiwan and China Fitful Embrace Edited by Lowell Dittmer UNIVERSITY OF CALIFORNIA PRESS University of California Press, one of the most distinguished university presses in the United States, enriches lives around the world by advanc- ing scholarship in the humanities, social sciences, and natural sciences. Its activities are supported by the UC Press Foundation and by philanthropic contributions from individuals and institutions. For more information, visit www.ucpress.edu. University of California Press Oakland, California © 2017 by Lowell Dittmer Suggested citation: Dittmer, Lowell (ed.). Taiwan and China: Fitful Embrace. Oakland: University of California Press, 2017. doi: https://doi. org/10.1525/luminos.38 This work is licensed under a Creative Commons CC-BY-NC-ND license. To view a copy of the license, visit http://creativecommons.org/licenses. Library of Congress Cataloging-in-Publication Data Names: Dittmer, Lowell, editor. Title: Taiwan and China : fitful embrace / edited by Lowell Dittmer. Description: Oakland, California : University of California Press, [2017] | Includes bibliographical references and index. | Identifiers: LCCN 2017016677 (print) | LCCN 2017019352 (ebook) | ISBN 9780520968707 (ebook) | ISBN 9780520295988 (pbk. : alk. paper) Subjects: LCSH: Taiwan—Relations—China. | China—Relations—Taiwan. | Chinese reunification question, 1949- | Taiwan--Politics and government—21st century. | China--Politics and government—21st century. Classification: LCC DS799.63.C6 (ebook) | LCC DS799.63.C6 T25 2017 (print) | DDC 327.51051249--dc23 LC record available at https://lccn.loc.gov/2017016677 26 25 24 23 22 21 20 19 18 17 10 9 8 7 6 5 4 3 2 1 Contents List of Abbreviations vii 1. Introduction Lowell Dittmer 1 Part I. National Identity 2. Taiwan’s National Identity and Cross-Strait Relations Yi-huah Jiang 19 3. Changing Identities in Taiwan under Ma Ying-jeou Jean-Pierre Cabestan 42 4. Mingling but Not Merging: Changes and Continuities in the Identity of Taiwanese in Mainland China Shu Keng and Emmy Ruihua Lin 61 5. Chinese National Identity under Reconstruction Gang Lin and Weixu Wu 75 6. Chinese Youth Nationalism in a Pressure Cooker Rou-lan Chen 93 vi Contents Part II. Political Economy 7. Varieties of State Capitalism across the Taiwan Strait: A Comparison and Its Implications Chih-shian Liou 117 8. The Nature and Trend of Taiwanese Investment in China (1991–2014): Business Orientation, Profit Seeking, and Depoliticization Chung-min Tsai 133 9. Cross-Strait Economic Relations and China’s Rise: The Case of the IT Sector Tse-Kang Leng 151 10. Social Entrepreneurialism and Social Media in Post–developmental state Taiwan You-tien Hsing 175 Part III. Political Strategy 11. Pivot, Hedger, or Partner: Strategies of Lesser Powers Caught between Hegemons Yu-Shan Wu 197 12. A Farewell to Arms? US Security Relations with Taiwan and the Prospects for Stability in the Taiwan Strait Ping-Kuei Chen, Scott L. Kastner, and William L. Reed 221 13. Xi Jinping’s Taiwan Policy: Boxing Taiwan In with the One-China Framework Jing Huang 239 14. Strategies of China’s Expansion and Taiwan’s Survival in Southeast Asia: A Comparative Perspective Samuel C. Y. Ku 249 IV. Conclusion 15. Taiwan and the Waning Dream of Reunification Lowell Dittmer 283 List of Contributors 301 Index 305 Abbreviations ACC ASEAN-China Center AFTA ASEAN-China Free Trade Area AIIB Asian Infrastructure Investment Bank ANZTEC Agreement between New Zealand and the Separate Customs Terri- tory of Taiwan, Penghu, Kinmen and Matsu on Economic Coop- eration APEC Asia Pacific Economic Cooperation APROC Asia-Pacific Regional Operations Center ARATS Association for Relations Across the Taiwan Straits ARF ASEAN Regional Forum ASEAN Association of Southeast Asian Nations ASL Anti-Secession Law ASTEP Agreement between Singapore and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu on Economic Partnership A2AD Anti-Access Area Denial BFA Boao Forum for Asia BOP balance-of-power CAFTA China-ASEAN Free Trade Agreement CCP Chinese Communist Party COC Code of Conduct in the South China Sea CPCCC Chinese People’s Political Consultative Conference CSTA Cross-Strait Service Trade Agreement DOC Declaration on the Conduct of Parties in the South China Sea DPP Democratic Progressive Party vii viii Abbreviations EAS East Asia Summit ECFA Economic Cooperation Framework Agreement FDI foreign direct investment FIE foreign-invested enterprise FPEZ Free Economic Pilot Zone FTA free trade agreement GMS Greater Mekong Subregion IC integrated circuit ICBM intercontinental ballistic missile ICT information and communications technology IMF International Monetary Fund IR international relations ITRI Industry Technology Research Institute KMT Kuomintang MIRV multiple independently retargeted vehicle OBM own-brand manufacture OBOR One Belt, One Road ODM original design manufacture OEM original equipment manufacture PAP People’s Action Party (Singapore) P3 CEP Pacific Three Closer Economic Partnership P4 Trans-Pacific Strategic Economic Partnership (aka TPSEP) PLA People’s Liberation Army PRC People’s Republic of China RCEP Regional Comprehensive Economic Partnership RMB renminbi ROC Republic of China SASAC State-Owned Assets Supervision and Administration Commission SEF Straits Exchange Foundation SLBM submarine-launched missile SMEs small and medium enterprises SOE state-owned enterprise SPIL Silicon Precision Industries Co. TAC Treaty of Amity and Cooperation in Southeast Asia TAO Taiwan Affairs Office TFT-LCD thin-film-transistor liquid-crystal-display TPP Trans-Pacific Partnership TPTS Taiwan Public Television Service TSMC Taiwan Semiconductor Manufacturing Company 1 Introduction Lowell Dittmer China’s contentious relation to Taiwan began when the People’s Republic of China (PRC) was founded in October 1949 and the defeated Kuomintang (KMT) set up an exile regime on the island two months later. Without now delving into the rich legal and historical complexities, suffice it to say that the island’s autonomous sov- ereignty has been in contention ever since, initially because of the KMT’s stubborn insistence that it continued to represent not just Taiwan but all of China, and later, when the tables had turned, because Taiwan refused to cede sovereignty to the now dominant power that had arisen on the other side of the Strait. At this writ- ing, the election of a Democratic Progressive Party (DPP) government under Tsai Ing-wen in January 2016 brings the island to a new inflection point. For, like the Chen Shui-bian administration in 2000–2008, the incoming DPP regime would really prefer to drop all claim to be part of the Chinese mainland and to embrace political independence. Of course they dare not say this in so many words because it would infuriate Beijing, which continues to insist that there is one China, that Taiwan is a part of it, and that any assertion otherwise by Taiwan constitutes an il- legal attempt at secession that Beijing has the legal right to prevent by force. China would prefer that contingency not to arise. Its use of force against Taiwan would result in great damage to the lives and property of people with whom mainland- ers share a Chinese ancestry (compatriots in an ethnic or cultural sense, tongbao) whom the PRC aims to return to the motherland’s embrace and possibly to the mainland as well. Chinese military forces still respect the striking power of Tai- wan’s armed forces and wish to avoid the possibility of US intervention to defend the island’s sovereignty (even though the United States no longer formally recog- nizes that sovereignty). Such escalation could well cause great harm to China, to 1 2 Chapter One Taiwan, and indeed to the United States. In other words, the Taiwan Strait remains an international flash point, one of the few places in the world that could unleash war between two great powers, both of which are nuclear weapon states. But one of the things that makes Taiwan so politically difficult and so intellectu- ally fascinating is that it poses not merely a security problem but a nexus of interre- lated puzzles. The following chapters focus in turn on three of its aspects. The first is “national identity.” This is a problem that Taiwan should not be permitted to have, according to mainland critics, because it is not even a nation. Yet Taiwanese do share a sense of collective identity that is widely perceived there as distinct, which they seek to preserve and profess to be willing to fight for. This has greatly compli- cated Beijing’s quest to promote reunification, particularly after the post-1979 shift from a focus on “armed liberation” to a focus on peaceful reunion, for to be peace- ful it must also be voluntary. The second aspect of the problem is socioeconomic. The post-1979 shift to peaceful reunification was premised on the assumption that through “three direct links”—postal, transportation, and trade—the embittered gulf dividing the two peoples at the Strait could eventually be bridged. While the “three links” met with an immediate “three nos” (no contact, no compromise, no negotiation) from the Chiang Ching-kuo regime, Beijing nevertheless persevered by accommodating “three indirect links” (mainly via Hong Kong), and these infor- mal connections, unsuccessfully repressed but ultimately tolerated by the Taiwan authorities, have proved surprisingly robust, paving the way for their formalization in 2008.

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