By: Murray Scot Tanner, RAND Coporation, May 2007

This monograph analyzes the political impact of the rapidly growing economic relationship between the People's Republic of China (PRC) and Taiwan and evaluates the prospects for Beijing to exploit that expanding economic relationship to employ economic coercion against Taiwan. It also identifies China's goals for applying economic pressure against Taiwan.

To establish a framework for evaluating China's relative success or failure in using economic coercion against Taiwan, this work draws upon the conclusions of the large and empirically rich body of studies of economic diplomacy that have focused on economic coercion and trade sanctions.

A large portion of this monograph is devoted to evaluating the cross-strait economic relationship and Taiwan's potential economic vulnerability to Chinese efforts to cut off or disrupt key aspects of that relationship. But this document also extensively analyzes the challenges that China has faced in its efforts to convert this raw, potential economic influence into effective political leverage.

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Book Contents:

Chapter One:
Introduction

Chapter Two:
Economic Coercion: Factors Affecting Success and Failure

Chapter Three:
Taiwan’s Struggle to Manage Expanding Cross-Strait Economic Ties

Chapter Four:
Economic Factors: Evaluating Taiwan’s Vulnerability

Chapter Five:
Political Factors: Converting Economic Influence into Political Leverage

Chapter Six:
China’s Economic Leverage: A Powerful Weapon, but Tricky to Use

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