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Trade liberalization and political control: Regulating trade between the People's Republic of China and the Republic of China on Taiwan.

Trade relations between the People's Republic of China ("PRC") and the Republic of China ("ROC") on Taiwan are complex because of their incompatible trade regimes, diverse political perspectives, different stages of economic development, and contrasting ideologies for legal arrangements. The central theme of this study is to propose solutions to regulate such complex trade relations. It also provides an analysis with respect to the substantive and procedural arrangements of a trade agreement between the PRC and the ROC. The study is divided into six chapters. Chapter one presents a factual background of PRC-ROC political and economic relations. Chapter two examines the main inconsistencies of PRC-ROC trade and economic regimes, which include problems such as the conflicting perspectives between trade liberalization and political control, the incompatibilities between centrally-planned and market economies, and the functions and limitations of legal arrangements for trade between both governments. Chapters three and four deal with the issues of trade restrictions for national security and foreign policy purposes as well as the prevention of market disruption. Chapter five discusses the impacts and applications of multilateral, regional and bilateral mechanisms for arranging PRC-ROC trade relations. Chapter six focuses on the procedural arrangements for concluding multilateral and bilateral trade agreements between the PRC and the ROC. This study concludes that a liberal perspective is an essential approach to maximize the economic benefits of PRC-ROC trade. Such an approach, however, may face difficulties such as governmental interventions which are sometimes inevitable for national security and foreign policy concerns. This study further indicates that political controls on trade activities between both governments should have limitations in order not to impair their own interests. On a long-term basis, PRC-ROC trade relations need to be liberalized and legalized. This study shows that the GATT system is the most appropriate mechanism in achieving the above purpose. Another option, which is available in case the GATT system breaks down, is the setting up of a regional or bilateral program to promote the regional or bilateral trade interests of the PRC and the ROC. It is hopeful that this study may serve two purposes. On a concrete level, it could provide a case study on the regulatory policies of PRC-ROC trade relations and propose alternative structures for future development. On a more general level, it could contribute to a better understanding of the nature and scale of the problems involved in the effort of linking two different types of economies, compounded by many aspects of conflicting political, economic, and legal characteristics.

Identiferoai:union.ndltd.org:uottawa.ca/oai:ruor.uottawa.ca:10393/6849
Date January 1994
CreatorsChen, Chun-shan.
ContributorsMcRae, donald,
PublisherUniversity of Ottawa (Canada)
Source SetsUniversité d’Ottawa
Detected LanguageEnglish
TypeThesis
Format384 p.

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