Tackling Asia's Paradox: Economic Dependence, Foreign Policy, and Domestic Split
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This study addresses “Asia’s paradox,” where deepening economic interdependence has not led to sustained political harmony in East Asia. It argues that domestic splits, non-violent conflicts between antagonized social groups with significant political and economic power, can disrupt the pacifying effect of economic dependence. Using an in-depth case study of Taiwan’s relations with the People’s Republic of China from the late 1980s to the late 2000s, this paper underscores the limitations of economic constraints on political relations across the Taiwan Strait, suggesting that despite economic interdependence, individuals’ political preferences may be swayed when identity agendas emerge at the center of politics. This research predicts that Beijing’s recent utilization of economic coercion for political purposes is likely to prove counterproductive, as it can provoke nationalist sentiments among the target country’s population and neutralize China’s economic leverages. For the same reason, the U.S.-ROK alliance won’t be hindered by South Korea’s economic ties with China.
Abstract
This study addresses “Asia’s paradox,” where deepening economic interdependence has not led to sustained political harmony in East Asia. It argues that domestic splits, non-violent conflicts between antagonized social groups with significant political and economic power, can disrupt the pacifying effect of economic dependence. Using an in-depth case study of Taiwan’s relations with the People’s Republic of China from the late 1980s to the late 2000s, this paper underscores the limitations of economic constraints on political relations across the Taiwan Strait, suggesting that despite economic interdependence, individuals’ political preferences may be swayed when identity agendas emerge at the center of politics. This research predicts that Beijing’s recent utilization of economic coercion for political purposes is likely to prove counterproductive, as it can provoke nationalist sentiments among the target country’s population and neutralize China’s economic leverages. For the same reason, the U.S.-ROK alliance won’t be hindered by South Korea’s economic ties with China.
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