China and Taiwan Relations Group 5 Day 5 1

Outline Basic Information of China and Taiwan Cross-Strait Relations Is Taiwan too economically dependent on China? President Tsai’s Economic and cross-strait Strategy 2

Basic Information Indicators China (PRC) Taiwan (ROC) 10/1/1949 10/10/1911 National Flag   Area 9,596,960 KM2 35,980 KM2 Population 1,283.9 millions 23.3 millions GDP 10866 USD Billion 524 USD Billion Language Simplified Chinese Traditional Chinese GFP Rank 3 15 3

Corss-Strait Relations Civic War in 1949 1992 Consensus One Country, Two Systems One China with respective interpretations Opposition to this consensus 2005Anti-Secession Law Taiwan's China Dilemma Cross-Strait relations are the relations between the two political entities, which are separated by the Taiwan Strait in the west Pacific Ocean, In particular between their respective governments, whose status as "countries" is debated: 4

Is Taiwan too economically dependent on China? Source: Ministry of Finance, Taiwan (ROC) and China Customs General Administration. 5

Is Taiwan too economically dependent on China? Source: Ministry of Economic Affairs (MOEA). 6

Is Taiwan too economically dependent on China? 2015: 39.4% of Taiwan’s Exports 49% of approved overseas investment went to China. China and Taiwan have signed 28 Cross- Straits Bilateral Agreements: The Economic Cooperation Framework Agreement (ECFA) (2010) Agreement on Intellectual Property Right Protection and Cooperation (2010) Investment Agreement (2012) Investment Protection and Promotion Agreement (2012) 8/5/16

Tsai Administration Economic Strategy According to President Tsai’s inauguration speech on May 20, 2016, “We will also promote a "New Southbound Policy" in order to elevate the scope and diversity of our external economy, and to bid farewell to our past overreliance on a single market.” We will broaden exchanges and cooperation with regional neighbors in areas such as technology, culture and commerce, and expand in particular our dynamic relationships with ASEAN and India. 8

Tsai Administration Corss-Strait Strategy The two governing parties across the Strait must set aside the baggage of history, and engage in positive dialogue, for the benefit of the people on both sides. We will also work to maintain the existing mechanisms for dialogue and communication across the Taiwan Strait. In 1992, the two institutions representing each side across the Strait (SEF & ARATS), through communication and negotiations, arrived at various joint acknowledgements and understandings. Cross-Strait relations have become an integral part of building regional peace and collective security. In this process, Taiwan will be a "staunch guardian of peace" that actively participates and is never absent. 9

China's response to Tsai's speech The Taiwan Affairs Office said Tsai's remarks were an "incomplete answer” according to the People’s Daily, the official newspaper of China. China wants Tsai to explicitly endorse an interpretation of the One China principle that China says was agreed with the KMT under a framework known as the 1992 Consensus. The 1992 Consensus, reached at a meeting that year between semi-official representatives of the two countries, provided a tacit understanding that both Taiwan and mainland China belong to “One China” but that both countries were free to pursue their own interpretation of what "One China" meant. 10