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When Identities Clash: Why Taiwan Opposes Cooperation with Mainland China

Sun, September 1, 8:00 to 9:30am, Hilton, Shaw

Abstract

Why does Taiwan oppose economically beneficial trade agreements from Mainland China (the PRC)? Taiwan and China signed the Economic Cooperation Framework Agreement (ECFA) in 2010, but progress has since been slowed by resistance in Taiwan – despite China’s offers of favorable concessions that they would be inclined to accept if offered by another partner. We argue that Taiwanese opposition to cooperation is caused in part by a clash between the way Taiwanese citizens understand their relationship to China and how China describes their relationship when proposing trade terms. While China describes Taiwan as part of the same family who thus merit favorable terms, Taiwan sees China as an equal peer and prefers reciprocity. We draw from psychological research on social interaction, to suggest that when two sides have different mental models for their relationship, cooperation is less likely. We test our argument in a novel experiment fielded to a national sample in Taiwan that holds the benefits of a proposed economic agreement constant but manipulates the relationship-based justification. The results of this study have implications for future diplomatic talks as both sides seek better trade terms without comprising their identity vis-à-vis the other.

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