China-Taiwan relations

Question 1

Example of China bribes (Costa Rica)

Answer 1

• switched recognition from ROC to PRC
• Pres, Oscar Arias Sanchez “economic reasons”
• 35,000 seat stadium, worth $100 million (inaugurated March 2011 with match between CR and PRC teams)
• bought Costa Rican bonds worth $300 million
• $130 million in direct aid
• 2007 established official trade links
• 2011 Free Trade Agreement

Question 2

Example of China bribes (PNG)

Answer 2

• sports stadium

- invested $651 million in nickel and cobalt mine in 2008

Question 3

Negative of chequebook diplomacy (Solomon Islands)

Answer 3

• 2006 riots
• against President Rini
• bribed parliament members using Taiwanese and Chinese money
• SI recognises ROC
• Australian Defence Force had to step in to quell violence

Question 4

Negative effects of chequebook diplomacy

Answer 4

• destabilise society
• not OECD standards
• stirs up resentment for China
• entrenches corruption
• Susan Windybank from Centre for International Studies “chequebook diplomacy has done little to tackly development issues”

Question 5

Taiwan bribes

Answer 5

• $100 m. - 150 m. per year

Question 6

China chequebook diplomacy

Answer 6

• preferential loans worth $520 billion to 8 states

Question 7

Three direct links

Answer 7

• trade
• air
• mail
• shipping
• enacted 1979
• opened market (Deng Xiaoping 1972 reforms)

Question 8

China-Taiwan trade

Answer 8

• accumulated worth of $309.18 billion (Sep.2003)
• increased from $46 million (1978) too $44.6 billion (2002), almost 1,000 fold
• China = Taiwan’s #1 source of trade surplus since 1991
• PRC = 28.0% Taiwan’s exports, 13.2% imports
• Taiwan invested over $82 billion in China since 1992 out of a total outward FDI of $145 billion (Peterson Inst. of Int. Economics), 85% of which is in manufacturing

Question 9

Preferential treatment for Taiwan

Answer 9

• tarrifs cut Sep. 2010
• China Taiwan Economic Cooperation Framework (June 29, 2010 in Chonqping)
• 539 Taiwanese exports
• 267 Chinese
• total worth per year $ 17 billion

Question 10

China and Fiji

Answer 10

• 2005 state visit by Chen Shui Ban (condemned by China)
• Fiji supported Taiwan’s bid to join the WHO
• 2006 coup d’etat by Cl. Bainimarama (China worried Fiji will recognise ROC)
• 2008 SMH reported that China’s aid to Fiji had increased from 650,000 euros to 100 million euros

Question 11

Taiwan’s UN bids

Answer 11

• 2004: 15 supporters, China rallied 93 nations to speak against
• 2008 referendum on whether to try again: only 35% voted, but 87% said yes
• 2007 bid, September 18: Sep. 15, 3000 Taiwanese rallied in front of UN, 300,000 rallied in Taiwan