Can We Join? Integrating Taiwan Into Global Economy Without Agreements

• In Event: China and Taiwan: Challenges and Opportunities

Abstract

Economic integration in Asia has progressed over the last several decades by forming more significant trade and investment linkages. The recent Regional Economic Partnership Agreement (RCEP) signed by 15 countries in East Asia and the Pacific pushed Asia's economic integration to the highest level as the RCEP creates the world's largest trading bloc. In this context, any country in Asia must get involved in this integration process to ensure its trade relations remain stable. However, the Republic of China (Taiwan) is the only country sidelined from this deal as the People Republic of China (PRC) blocks the entry. The self-governed island's hopes of making free trade deals with other Asian countries that are highly influenced by China depend much on Beijing's political attitude toward Taiwan. Yet, the technology-related competition accelerates between China and the U.S. ignited by Trump and now prolonged amid the global pandemic under the Biden administration. Many of the technology companies may now realize the importance of Taiwan. While Taiwan is still excluded from the regional economic integration, its technology innovation could provide better leverage partnerships with U.S. and other international players. With the aggregate level data collected from the RCEP countries, this paper aims to delineate Asia's economic integration pattern in the past, particularly the change in the Trump Era, and examines the pressing challenges to Taiwan's future. We contend that Taiwan may utilize its technology strength as the bargaining chip to convince trade partners around the world as well as potentially pursue rapprochement between the two sides of the Taiwan Strait.

Authors

• Chien-pin Li, Kennesaw State University

• Dennis Lu-Chung Weng, Sam Houston State University