| Summary: | 碩士 === 長榮大學 === 高階管理碩士在職專班 === 100 === The development of Taiwan, China and international politics for the past decades lead to a special relationship across the Taiwan Strait. It has become an important topic to the investment of Taiwanese businesses in China. Therefore, the present study attempts to collect and analyze related literature to clarify the complexity of the relationship between Taiwan and China, and to provide some suggestions that are helpful for the development of cross-strait economic policies.
The key point in negotiating the Bilateral Investment Agreement is the status of Taiwanese businesses that is viewed by China’s Government. China seems to view the investment of Taiwanese businesses as “domestic investment.” However, if China can view the investment of Taiwanese businesses as “foreign investment,” Taiwan's sovereign status will be more stable. Research findings reveal that Taiwan still struggle between contend and dependent relationship with China.
The significant difference in international positions between Taiwan and China leads to a manifest power asymmetry across the Taiwan Strait. If Taiwan insists on her sovereignty while negotiation, China will not accept the international agreements based on a country-to-country prerequisite. Based on the power asymmetry theory, to struggle with China’s threat, Taiwan need to improve her own economic development and maintain good and stable relations with Europe and the United States.
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