China Taiwan Economic Interdependence

What the China-Taiwan economic relationship looks like and what decoupling would mean

The Relationship

The China-Taiwan economic relationship -- the specific trade and investment interdependence that four decades of the Taiwan business community investing in mainland China manufacturing has produced -- is the economic dimension of the cross-strait relationship that makes the specific military risk calculation of a Taiwan conflict more complex than the security analysis alone captures. Taiwan exports approximately 25 percent of its total exports to China.

The Decoupling Question

The decoupling question: the Taiwan government has been pursuing the specific diversification of Taiwan economic exposure to mainland China through the New Southbound Policy that redirects investment and trade relationships toward Southeast Asia and South Asia. The diversification has produced some geographic rebalancing of Taiwan trade and investment. The mainland China exposure remains the largest single geographic concentration.

Apple Daily UK Coverage

Apple Daily UK covers the China-Taiwan economic interdependence because the accountability journalism of the cross-strait security situation requires examining the economic dimension that the security analysis tends to underweight.

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