Free Essay

China vs Taiwan

In: Other Topics

Submitted By z969862
Words 3004
Pages 13
April 23, 1999

Policy Consideration

by the




History of the Republic of China, past and present

In December 1978, the representative of China in the United Nations, the Republic of China, Taiwan was asked to leave the UN. Taiwan had to give up its seat in the UN Security Council as a permanent member and in the UN General Assembly. This is due to the US’s recognition of communist China, the Peoples’ Republic of China. Ever since 1949, both Chinas, have claimed be the legal government of China. Until 1992, both states were in a state of war ever since the nationalists Kuomintang were exiled to Taiwan. Since then, the US has pledged the security of Taiwan in the event of a communist China invasion by the People’s Liberation Army. As a result of this, the PRC has refrained from invading Taiwan because of US involvement. What this policy paper will address is the potential conflict that will occur if Taiwan declares itself as an independent state. The Republic of China, Taiwan is situated on an island called Formosa. It was settled by the Chinese in the 17th Century and saw early colonial rule of the Dutch between 1620 to 1662, when it reverted back to Imperial Chinese rule. Between 1845 and 1945, the island of Formosa also saw Imperial Japanese rule. At the end of World War Two in 1945, the nationalist Kuomintang or KMT was facing a civil war with the Chinese Communist Party or CCP for the control of Mainland China. By 1949, the KMT was defeated and retreated to the island of Formosa, forming its own state, Taiwan. As a result both regimes have claimed to be the true legitimate representation of China: the communist China called People’s Republic of China and the nationalist China, Republic of China or Taiwan. Since then both Chinas, have tried to seek legitimacy in the international arena arguing to be the only legal China in the world today. However, the PRC has always claimed that Taiwan is a renegade province and belongs to the mainland. However, this presents a problem.

The Problem

Taiwan has enjoyed a huge economic prosperity despite the fallout of the Asian crisis currently. Since 1949, with the help of US aid and foreign investment, land reforms, government planning and free universal education, it has become one of the fastest growing economies in the world today. This has brought an increase in living standards, an improved and competitive heavy and high technology industry. The per capita Gross Domestic Product is US$ 13,510 according to 1995 estimates. Taiwan is one the biggest and growing economies of the Newly Industrialized Countries or NICs and is the 10th largest capital exporters in the world. By 1996 also, it had its first free presidential election, which meant that Taiwan was growing to be more democratic and open. (The World Almanac) If the PRC and Taiwan were to reunify, that would mean having to share the wealth and be subjected to the autocratic and centralized control of the communist regime in Beijing. The PRC has had to contend with the nuisance of Taiwan, being the only Chinese territory not under the control of the Beijing government. Through the past decade, the other Chinese territories like the island of Hong Kong, Kowloon and its surrounding New Territories was returned by the British. In 1999 also, the PRC anticipates the upcoming return of another Chinese territory, Macao Island by the Portuguese. However, Taiwan has been a source of discomfort since the Beijing government does not have any authority in Taiwan. The threat of Taiwan here is that if they no longer identify themselves with the Mainland Chinese, they might pursue the course of independence instead of seeking reunification. As the US has promised to support Taiwan if invaded, it is not clear whether the US will support Taiwanese independence or maintain the close relationship with the PRC since the Shanghai Communiqué of 1972. (Stuart and Tow)
US Relations with the PRC and Taiwan Since the 1960s, the PRC has had disagreements with the former Soviet Union. This had an adverse result. The US sensing a possible ally, made overtures to the PRC. One of the first steps to diplomatic relations, was the Ping-Pong Diplomacy in 1969. This was a sort of cultural exchange and dialogue between the US and the PRC. It was decided by the Beijing government in 1970 that gradual rapprochement would be a good strategy to counter the communist threat of the former Soviet Union. This evolved into a strategic triangle with the PRC holding a weak dagger position against the former Soviet Union and the US in a comfortable pivot position. However, the PRC warned the US that it should not exploit the growing relationship with the PRC to go against the former USSR. What led to the full normalizing of relations between the PRC and the US was the expulsion of Taiwan from the United Nations in 1971. This meant that the UN recognized the PRC as the legal representative of China, thereby embracing the one China policy. Though the US supported the entry of the PRC into the UN, they did not support the expulsion of the Republic of China, Taiwan. To end the friction between both countries, Premier Zhou Enlai of the PRC invited President Richard Nixon to Beijing, which he did in February 28, 1972. This marks the first time an American President has visited the People’s Republic of China. In that same year the Nixon administration and the Beijing government agreed to in consensus to what is now known as the Shanghai Communiqué. The Shanghai Communiqué of 1972 contains the blue print for future Sino-American relations. The PRC must give up its pledge of invading Taiwan to reunite the two ‘Chinas’ and that it would seek a peaceful resolution to the issue of reunification. In exchange the US will acknowledge the one China policy, which meant recognizing the PRC as the sole legitimate government of China, thereby withdrawing the recognition of the Republic of China. However, this also meant that the US had to withdraw its forces from Taiwan but would safeguard Taiwan’s security in the event of an invasion. This enabled the US to counter the threat of the former Soviet Union but still it did not tantamount to full normalization of relations. Between May and June 1973, both the US and the PRC opened up liaison offices in both capitals. Finally on December 15, 1978, the US finally recognized the PRC as the sole legal government of China, thereby withdrawing the recognition of Taiwan. Both the US and the PRC finally established diplomatic relations on January 19, 1979. (The World Almanac) Even if the US has withdrawn the recognition of Taiwan, the US still maintains a relationship with the Republic of China. The US still maintains its presence in Taiwan through the American Institute in Taipei while the Taipei Government of Taiwan maintains its agency of the Taipei Economic and Cultural Representative Office in Washington DC and other major US cities. (The World Almanac) Though the US adheres to the Shanghai Communiqué of 1972, it still regards as Taiwan as an integral part of the US strategic interest in the Asia Pacific. This is because Taiwan sits in the middle of the shipping routes between Northeast Asia and Southeast Asia. Taiwan also could prove to be potential blue water base for the US Naval Pacific 7th Fleet for future US military operations in times of crisis. (Stuart and Tow) The US has also maintained its security guarantee to Taiwan in the event of an invasion by PRC provided that the Taiwan Government does not declare independence from Mainland China. This is stated in the Taiwan Relations Act of 1979. The act also provides that the US retains all past treaties made with Taiwan and monitors its military capabilities. This is made possible with the relations between the PRC and Taiwan still at a standstill.
Relations between the PRC and Taiwan Throughout the late eighties and nineties, we have seen a gradual improvement of relations between the PRC and Taiwan. In 1980, the PRC proposed to negotiate a settlement with the Taiwanese. They offered the ‘one China, two systems’ as a recipe for reunification. Under this system, Taiwan would be allowed autonomous control over all its policies except in defense and foreign affairs. This is the system, which Hong Kong and its territories now have since reverting back to PRC rule. In 1989, the then President of Taiwan, President Chiang Ching-Kuo allowed visitation rights of Taiwanese relatives residing in the PRC. It was also agreed that both the PRC and Taiwan would agree to a bilateral economic trade and investment, which therefore opened up line of communications between both states. (Myers) The PRC also helped for the fact to offer Taiwanese investment through commercial inducement and favors. As a result, exports to the PRC has grown to more than 20%, more than the allowed Taiwanese government set of 10%. This proves important because through bilateral economic trade, the PRC can affect the Taiwanese drive towards independence from the PRC. However, this can prove detrimental to the Taiwanese because it they intend to cool off relations with the PRC, not only would they risk being invaded but also risk the slowdown of economic growth, which could also affect the whole of Southeast Asia. (Lasater) The relations between the Beijing government and the Taipei government were good between 1989 and 1995 because of economic ties. This was evident from the cross- Strait investment and trade of the Taiwanese business community in the PRC. By 1995, the total trade to the PRC was 12% of the annual foreign trade and exports of Taiwan. Investment was up to more than US$20 billion. By April 1992, President Lee Teng Hui ended the technical state of war with the PRC. On April 27, negotiations began in Singapore between the Taiwanese and the PRC. This led to further agreements and an exchange of understanding between the two governments. (Myers) Despite the agreements and the improving relations between both sides, things went bad. In the summer of 1995, the US granted the Taiwanese President Lee Teng Hui a visa to visit his US alma mater Cornell University. This was vehemently protested by the PRC because not only did he visit his alma mater, he met with members of the US Congress and spoke about democratic developments in which the first presidential elections would take place in 1996. This act provoked a reaction from the PRC government in Beijing. They recalled its ambassador and postponed the visit of the PRC defense minister to the US, suspended talks on the Missile Technology Control Regime. In China, they suspended negotiations on the reunification issue and also heightened their military exercises off the Zheijiang coast north of Taiwan. This is because the action of the US allowing a Taiwanese head of state into the country tantamount to supporting ‘two Chinas,’ which is a violation of the 1972 Shanghai Communiqué. (Stuart and Tow) In 1996, the first presidential elections were held in Taiwan. This provoked an even stronger response from the Beijing government. On March 8th, 1996, the PLA practiced fired two M-9 missiles off the ports of Taiwan. These M-9 missiles were ballistic missiles that were nuclear capable and the missile firing was to intimidate the Taiwanese that Taiwan is part of China and would not allowed to be an independent state. They were also meant to project the idea that the PRC would use force to compel the reunification of China and the projection of its nuclear capabilities. (Andersen) However according to defense analysts, the invasion of Taiwan would not succeed if the US forces intervene. This is what happened during the Taiwanese presidential elections, two carrier battle groups were sent to the Taiwan Straits as a precaution against PLA aggression maneuvers. It is believed that Taiwan would not be able to withstand a full-scale invasion by the PLA for three months if the US does not intervene directly. Even with the air superiority of the Taiwanese air force consisting of US built F-16 fighter aircraft and French built Mirage 2000-5 multi- role aircraft, the defense of Taiwan would be solely depended on US military commitment according to the Taiwan Relations Act of 1979. However, US military commitment would depend on if the Taiwanese do not declare independence and would come to their aid if the PRC reneged on their promise of the Shanghai Communiqué. (Stuart and Tow)
US Policy Considerations As the Pentagon suggests, the PLA has increased it surface to surface missiles stockpile from 200 to 600 missiles aimed at Taiwan. Under pressure from the Taiwanese, the US might have to provide for the defense of Taiwan by selling Aegis class warships or the advance versions of the Patriot missile defense systems or provide direct US involvement. However, the sale of modern warships and anti-missile defense network system and the possible deployment of troops would lead to a confrontation between the US and the PRC, which the US can ill afford to have. The PRC would charge that this is against international law and the act would undermine the stability of the Asia Pacific region. (The Economist) It would be the Cold War revisited all over again. The US could also find itself isolated from its major Asian and European allies. Recently, the tensions between Taiwan and the PRC have somewhat cooled down. This is because both governments are pursuing their own domestic agendas. The Taipei government of Taiwan are pursuing their consolidation of democracy and reforming the polity and economy as a result of the Asian economic crisis. The Beijing government of the PRC is currently trying to cope with the post transition and ensuring the stability of the ‘two Chinas’ principle of Hong Kong and its territories since their return. However, the threat of force to unify the country by the PLA is still real if Taiwan resorts to declare independence. To maintain stability in the region, the US must be able to keep its presence in the region. Having a strong presence in the region would deter any PLA invasion of Taiwan. In the event of a PLA attack, the US would provide military intervention in the aid of Taiwan provided it does not go down the road to full independence. However according to security analysts, an unprovoked military reunification campaign would not be in the political and economic interests of the PRC. Even so, it is in the interest of the US to maintain its presence in the region to contain a possible PRC aggression.
Even with the presence of the US to maintain stability in the region, the US should promote the peaceful solution to this age-old problem. The difficulty of Taiwan’s democratization would prove to be detrimental to reunification with the PRC. Nevertheless, the US should maintain its stance since 1979 that is to maintain its one China policy; maintaining diplomatic relations with the PRC government and retaining informal relations with Taiwan; declare firmly that the reunification issue must be resolved peacefully and insisting that it must be resolved by the Chinese themselves. In this matter the US should encourage trust building and cooperation similar to the agreements and treaties made between the PRC and Taiwan. A good start to the reunification process is the ending of the state of war by the Taiwanese in 1992. This must preclude to a peace treaty to be signed by both governments and allow for the start of negotiations on the issue of reunification.
The Taiwanese must also be encouraged to play a more active role in the reunification issue. Providing security guarantees to the Taiwanese do not mean tacit support for independence but conditional in the event of a provoked attack by the PRC. In 1996, the Shanghai Declaration made Taiwanese foreign policy to receive support for independence. This policy of the current administration pronounces that the US would not support the ‘two Chinas’ nor it would support ‘one China’ and ‘one Taiwan’ and the US would not support the membership of Taiwan in intergovernmental organizations such as the UN. This has been the policy of past administrations albeit an implicit one, however this marks the first time a US president has affirmed expressively the position of Taiwan. (Andersen)
With the end of the cold war, the US must find itself a new role to play in an ever-changing geopolitics. We must define our interests explicitly, which must be clear to the governments of both PRC and Taiwan. The issue of reunification should resolved peacefully and not through military campaigns. Such campaigns would be detrimental not only to the security and stability of the Northeast Asia region but also the whole of the Asia Pacific region. Until such a time, it will be a long time when the Taiwanese and the Mainland Chinese can somehow live to coexist in an arrangement that is beneficial to all in the region. It is consequential that the US maintains its presence in the region in a state of constant military readiness.


Andersen, Christopher. “Taiwan: Apocalypse, maybe.” The Economist 349.8093 (November 7, 1998): 6-8.

Anonymous. “Asia: An American Shield for Asia.”
The Economist 350.8107 (February 20, 1999): 37-38.

Lasater, Martin L. Asia and the Pacific-The Changing of the Guard: President Clinton and the Security of Taiwan
Boulder: Westview, 1995.

Myers, Ramon H. “ The Challenge of China’s Reunification: US Foreign Policy.”
Vital Speeches of the Day 63.13 (April 15, 1997): 389-391.

Stuart, Douglas T. and Tow, William T. A US Strategy for the Asia Pacific
New York: Oxford University Press Inc., 1995

The World Almanac and Book of Facts: 1998.
New Jersey: K-III Reference Corporation. 1997…...

Similar Documents

Premium Essay

India vs China

...Overview China and India provide vast opportunities for trade and investments in all major sectors. In the next few decades, China and India will join the U.S to become the three largest economies in the world. China and India will provide enormous upside potential for U.S. firms, as well as risks. Cultural System Doing business in a particular nation needs a multi-dimensional understanding of its culture and business practices. Understanding those differences and adapting to them is the key factor. India The Indian economy has been booming for the past few years. The country holds great promise for the future. The business culture of India is a reflection of the various norms and standards followed by its’ people. Indians have various cultural yardsticks, which extend to their business culture too. I found the following culture norms to be important: 1. “The ‘Namaste’ forms an important part of Indian etiquette and is generally used while greeting and saying good-bye. This gesture is performed by pressing the palms of both hands together (fingers up).” However, educated Indian men and women, who are acquainted with western customs, prefer shaking hands. Moreover, while greeting any individual use his or her title. To mark respect, you may also add a suffix ‘ji’ to the name of a person. 2. In India, companies follow a hierarchical system and the decision making is usually from the top to bottom. Business decisions could be at times time consuming, and......

Words: 1286 - Pages: 6

Free Essay

Conflict Between Taiwan and China

...05/01/2013 Conflict between China and Taiwan, China-Taiwan Conflict Maps of World We do magic to Maps World Maps North America Map South America Map Europe Map Asia Map Africa Map Australia Map Search USA Map Buy Maps Get Custom Mapping Quote+1 408 416 3459 | Home / Taiwan / History / Conflict between China and Taiwan Ads by Google Conflict between China and Taiwan Company Owner Only Advice Free Expert Help On Employer Issues Call us now on 0844 499 3740 About Us - Employment Tribunals - Free Seminars - Free Advice The China Taiwan conflicts find its history since Taiwan wished to gain its independence since 1949. The China Government is ready to support the economic and political stability in entire East Asia but do not want to come into any compromise where Taiwan's Independence is concerned. While Chinese leaders prefer peaceful means for dealing of the pro pro independence course Taiwan's Taiwan Tours Conflict Tourism China What's New? Check our Blog Taiwan Map Political Map of Taiwan Where is Taiwan Airports in Taiwan Taiwan Lat Long Map Taiwan Outline Map Taiwan Google Map Taiwan Stock Exchange Location Map Taiwan Mineral Map Taiwan Earthquake Map, 2010 Taiwan Rail Map About Taiwan Taipei, Capital of Taiwan Flag of Taiwan Facts about Taiwan Taiwan Independence Day New Taiwan Dollar, Currency of Taiwan Weather Government History People Society Religion Culture Postal Codes Country Codes...

Words: 833 - Pages: 4

Free Essay

China vs India (Politics)

...In this essay, the political regimes of China and United States will be discussed. A political regime is an assembly of political structures that make up a government. This helps in regulating the management of the government and building of the society. The three ways how the government can choose to run the country are via, One-Party State, Liberal Democracy or Military Dictatorship. China and United States have the world’s biggest economies and effective militaries with their ruling influencing politics globally. Even with a huge trade agreement and countless diplomatic meetings, the both countries are unable to sustain a façade of a civil relationship. Though, there is pressure from leaders of United States, China is not discouraged but instead continues to grow its economy. (Super-power showdown - US vs. China, 2012) China follows a One-Party State political system. It is led by a highly controlling communist party. The Chinese Communist Party is fully committed in upholding endless domination in power and will not tolerate others who doubt its right to rule. Freedom of speech is strictly constrained. The Chinese Communist Party dictates both state and society in China. They have been ruling China for over six decades, ever since they gained power in 1949. There are no elections in China. All institutions, executive, judiciary and legislation are all communist as well. (Lawrence & Martin, 2012) Benefits of being a socialist include: equal distribution......

Words: 1471 - Pages: 6

Free Essay

Turkey vs. Taiwan

...Distance LACK OF LAND BORDER As you can see above the island of Taiwan is located in the Western Pacific between Philippines and Japan. Turkey is bounded by the Aegean Sea on the west, on the northwest by the Sea of Marmara, Greece and Bulgaria and on the north by the Black Sea. Taiwan is available for air and sea transportation. There are five harbors and eighteen airports in Taiwan, two of which are international. At this point we think that the sea transportation is suitable for the transport of bulky goods like hybrid cars although it is the slowest shipping method for exporting goods. In addition, sea transportation is the most preferred transportation method according to air, road transport and railway because of the cheapest way. DIFFERENCES IN CLIMATES AND DISEASE ENVIRONMENTS In Taiwan there is no severe cold in winter and no cruel summer. Annual average temperature of Taiwan is 22 degrees Celsius. Weather conditions can fluctuate little during winter and spring but the weather is relatively stable in winter and autumns. As a disease environment, we can talk about a liver disease which is a common disease in Taiwan. A parasite Cryptocaryon which infect with raw or uncooked fish damages to liver so it is known for liver disease. Other diseases that can be seen in Taiwan are HIV/AIDS and hepatitis. Ultimately cardiovascular diseases which occurs results of air pollution can be seen in Taiwan. Typically, three climatic types can be seen in Turkey,......

Words: 2291 - Pages: 10

Free Essay

China-Taiwan Relations

...China-Taiwan Cross-Strait Relations: A General Overview The topic of Taiwan’s independence has been a decidedly sensitive subject for both those who are from either implicated party and outside nations alike, since the defeat of Kuomingtang (KMT) by the Communist Party in 1949. After so many decades of debate and political conflict, there has yet to be a concrete solution – the Taiwanese increasingly identify themselves as citizens of an independent nation, while the majority of the world has yet to recognize them officially as a nation separate from the PRC. Both parties involved – the PRC and Taiwan – have taken incredibly stubborn stances on this issue for the past several years, and it does not look like there will be an easy solution in the near future. China-Taiwan cross-strait relations are quite complicated, but for the sake of simplicity, it can be broken down into the period following the Japanese control over Taiwan, the defeat of the KMT, the period between the rise of the Democratic Progressive Party (DPP) and contemporary times, and finally, the rest of the world’s – namely the US’ – involvement in the entire matter. Prior to 1949, China’s governing group was the KMT – a nationalist party, as they call themselves. For 50 years, the Japanese controlled Taiwan – though arguably, they did more good than bad, as Taiwan developed much quicker than mainland China through their help – but was forced to relinquish its hold in 1945, when the Axis Powers were......

Words: 2631 - Pages: 11

Free Essay

China Taiwan

...China and Taiwan, while in practice maintaining a fragile "status quo" relationship, periodically grow impatient with the diplomatic patchwork that has kept the island separate from the Communist mainland since 1949.  After losing the civil war to Communist Chinese and fleeing to Taiwan in 1949, the nationalist Kuomintang (KMT) leaders of the Republic of China regarded the Communist Chinese government as illegitimate, claiming the mainland as rightfully their own. Beijing, in turn, regards Taiwan as a renegade province, and has tried repeatedly to persuade the island to negotiate a return to the fold. The KMT returned to power in 2008 after being in opposition for eight years. During this time President Chen Shui-bian and his Democratic Progressive Party (DPP) had engaged in policy that widely departed from the KMT, invigorating efforts to seek Taiwan's sovereignty. Current President Ma Ying-jeou takes a decidedly more conciliatory approach; shortly after taking office he declared a "diplomatic truce" with China. Since then, Taiwan's relations with the mainland have improved. Share 91 6 ------------------------------------------------- “One China” Principle The two sides sharply disagree on Taiwan's de jure political status. The People's Republic of China asserts that there is only "One China" and Taiwan is an inalienable part of it. Beijing says Taiwan is bound by the consensus reached in 1992 between the representatives of both governments in Hong Kong. Referred to as...

Words: 1702 - Pages: 7

Free Essay

Food Safety Issues in China and Taiwan

...Business, Government and Society Final Group Project (G5) Title of Assignment: Food Safety Issues in China and Taiwan Should Producers Be Solely Responsible for Food Safety Issues? Date of submission: 26 March 2012 Table of Content 1. Introduction 2. China Food Scandal 3. Analysis of China’s case 3.1 3.2 3.3 3.4 Conflict: Business vs. Business Conflict: Business vs. Government Conflict: Society vs. Government Implementations and Critique 4. Taiwan Food Scandal 5. Analysis of Taiwan’s case 5.1 5.2 5.3 5.4 Business Government Consumers Implementations and Critique 6. Alternative Solutions 6.1 6.2 6.3 6.4 Changing the business culture by incentivizing ethical practices 2-Prong approach Improve information symmetry Develop a systematic approach for food scandals 7. Conclusion 8. Appendix 9. References 1. Introduction In recent years, the world has seen many cases of food safety issues, especially in Asia and the effects are global. Our group has chosen China and Taiwan as our two main countries for analysis: China is one of the world’s largest exporters of food products and food safety issue is pertinent; Taiwan’s food products are exported to 15 major countries such as U.S., China, Germany, Hong Kong, and Malaysia (Wang, 2011), thus food safety issue is serious as well. If these hazardous products were circulated to different countries, the consequences would be widespread. This report provides the background information, analysis of the......

Words: 4735 - Pages: 19

Premium Essay

U.S. vs China

...50 countries and 3 regions” (Natural Cultural Dimensions, 2014). Based on Holfstede’s theory there are five dimensions of national cultures: power distance index (PDI), individualism (IDV) vs. collectivism, avoidance of uncertainty (UAI), masculinity (MAS, and long-term orientation (LTO) vs. short-term orientation. The country culture scores on The Hofstede Dimensions correlate with other data regarding the countries concerned. Power distance, for example, is correlated with income inequality, and individualism is correlated with national wealth. In addition, masculinity is related negatively with the percentage of national income spent on social security. Furthermore, uncertainty avoidance is associated with the legal obligation in developed countries for citizens to carry identity cards, and pragmatism is connected to school mathematics results in international comparisons (Ivancevich & Konopaske, 2013). Different cultural dimensions can provide an HR department with insight on how to handle business relations with foreign operations. Chinese vs. US Cultural Differences When using Holfstede’s theory to evaluate cultural differences amongst American and Chinese practices, the differences are evident. Three out of the five dimensions of national cultures are different. Individual vs. collectivism, power distance, and long-term orientation differ greatly; while there are similarities in masculinity and avoidance of uncertainty. Individualistic (IDV) cultures are......

Words: 997 - Pages: 4

Premium Essay

Us vs China

...really trust Olin Insurance Company, we need to find out if the company is concerned with helping our middle income people, or only concerned with their bottom line. Wuhan is a growing city which was listed second on the list of future “supercities” in the June magazine called Future Supercities. We feel that Wuhan has a lot to offer, because it is located in central China which is just a one hour flight from Shanghai. If we are not able to negotiate these terms, we need Olin to show us another method that would help the Chinese middle income people. For a resistance point, we will not accept a deal that would only locate their office within Shanghai. We may be somewhat flexible in opening a second office in Shanghai in the future after Olin proves they are a trustworthy company. We understand that Olin wants to maximize their profits, but we need to also make sure we help our economy and the growing Chinese middle income people. b) We need a training center set up for 50 promising Chinese candidates in the city of Wuhan within six months of establishment. Building our economy is extremely important to China. Unlike the United States of America, the Chinese insurance market is very different. A lot of our Chinese people have to be educated on why there is a need for insurance. We look at this as a way to expand the pie. We understand that this will raise Olin cost but in the long run this will only help grow Olin as a business. Olin Insurance would be able to sell more......

Words: 5370 - Pages: 22

Free Essay

Pak vs China

...Pakistan and china relations Submitted to: Miss. Ayesha hanif Submitted by: Myrah Anwaar 43 Sidra Awan 38 Sara Amjad 40 Ridha Masood 32 Aimen Siddique 36 Javaria Jamil 02 Table of Contents Executive summary: i China: 1 Pakistan 1 Introduction: 2 Background : 3 Sino-Indian war: 4 Timeline of Important events: 5 Diplomatic relations: 6 China support on Kashmir issues: 6 Sino Pakistan boundary agreement 6 China –us relation with the help of Pakistan 7 China support after 9/11 8 Trade relations: 10 Free Trade Agreement: 10 Exports: 12 Imports: 13 Kashgar Special Economic Zone (KSEZ): 14 Thar Coal Project: 15 Influence of china-india trade relation on pakistan : 15 Pakistan-china military relation 17 China and Pakistan defense ties 17 The Indian influence in military relations: 19 GEO-STRATEGIC IMPORTANCE OF PAKISTAN 20 Location of Gwadar port: 20 CONSTRUCTION OF GWADAR......

Words: 8276 - Pages: 34

Premium Essay

Us vs China Trade

...In recent years, discussions between the governments of China and the United States have centered on each country’s external imbalances, large trade surpluses for China and deficits for the United States, and the need for structural reforms to achieve more sustainable patterns of growth in future years. This paper argues that reductions in external imbalances suggest that some restructuring has occurred. However, a more detailed examination of economic developments within each country offers less basis for optimism. China has experienced a large appreciation of its real exchange rate and an external surplus less than half that of the years preceding the global recession. However, the domestic counterpart has been even-higher rates of investment as opposed to lower rates of saving and a more sustainable growth of public and private consumption. For the United States, a reduction in the external deficit has been associated with an extreme contraction of domestic investment rather than increased saving. It is noteworthy that the economic trade between the two countries has become even more unbalanced than in the years before the recession, and the bilateral deficit now accounts for two-thirds of the U.S. global current account deficit. The concluding section argues that further reduction in the trade deficit through the expansion of U.S. exporting capabilities is critical to its future performance. The section discusses policy changes that would slow the process of shifting......

Words: 428 - Pages: 2

Free Essay

Google vs China

...Google’s Values Conflict with Demands from the Chinese Government • The Conflict The conflict between Google and the Chinese Government was generated from a new China-based version of Google’s search engine. Chinese Government appealed that this China-based version was not respecting Chinese laws and that any Chinese Google’s user could have access to sites deemed taboo by China’s government. The problem was that Google did not made an specific Google’s searcher version for China. They were just redirecting Chinese Google’s users to their Hong Kong’s webpage, which has a different legislation. Google had only two options: Censor this Chinese version to adapt it to Chinese legislation, or not to adapt this version and lose the Chinese market. • For discussion - Which internal and external stakeholders are positively and negatively affected by Google’s decision to oppose censorship of its search engine? - Which of the six general environmental forces influenced Google’s decision about censorship in China? - Use the four approaches to deciding ethical dilemmas to evaluate whether Google made an ethical decision regarding its position about censorship. - To what extent did Google respond to the Chinese government in a socially responsible manner? - Do you think Google is making a good decision to fight censorship? Why not just to accommodate the Chinese government and continue to make inroads into the lucrative......

Words: 978 - Pages: 4

Free Essay

China vs. America

...In the near-term future, China will pose a minuscule hegemonic threat to the United States due to socio-economic and military inferiority. Despite unparalleled economic growth since amidst the 1980s, in 2015, the International Monetary Fund estimated America’s nominal GDP at $17 trillion, dwarfing China’s GDP of $10 trillion[1]. In addition, in 2015 the International Monetary Fund also ranked China’s GDP (PPP) per capita at $14,107 compared to $55,805 in the United States[2]. For China to rival the U.S. in terms of nominal and GDP per capita, the country would have to implement long-term economic policies to increase productivity and yield equal worker salaries. According to the Economist Intelligence Unit, China will not surpass the U.S. in terms of nominal GDP until 2026[3]. China also fails to be an innovation-driven economy. Over the last decade, the country has primarily worked as a manufacturing location for foreign companies, as 83% of all high-tech products made in China were produced for foreign companies[4]. Despite using its economic power to influence nations, China has few allies and is surrounded by potentially hostile nations. China also suffers from regional territorial disputes, notably the South China Sea and Tibet. Politically, being a socialist one-party state government combined with a lack of democratization, China has unstable foreign relations with many nations. Lastly, aside from personnel, America has a much larger military arsenal and ranks first......

Words: 993 - Pages: 4

Free Essay

China vs. India

...Edward Funke Gunesekara Economics and Change/EG XX March 2012 China vs. India Although no two dictionaries agree on the definition of democracy, for our purposes, modern democracy can be defined as “government by the people in which the supreme power is vested in the people and exercised directly by them or by their elected agents under a free electoral system" (Cincotta 2) In the phrase of Abraham Lincoln, democracy is a government "of the people, by the people, and for the people." However, even if freedom, defined as individual rights, is guaranteed, democracy does not necessarily lead to freedom. This can be seen by examining the “democracies” of India and China. The Indian Constitution offers all the Indian citizens, individually and collectively, these basic freedoms and rights. They are guaranteed in the Constitution in the form of six broad categories of Fundamental Rights and are justifiable. It means that each and every Indian citizen has the right to Constitutional remedies for the enforcement of these rights. There is a free, independent and separate judiciary to see that these rights are not violated and tampered with. All are equal before law, right from the Prime Minister to a peon. This is the very spirit and essence of our democracy. An independent, strong and incorruptible judiciary is one of the main pillars of democracy. According to Henry S, Rowen, China is “a Leninist state in which the Communist Party has combined economic...

Words: 331 - Pages: 2

Free Essay

China vs. India

...seems that no one goes anywhere without their smart phone in their pocket and a GPS in their car. A field that has been completely changed by advances in technology is the medical field. No longer due doctors take ones temperature or blood pressure manually, they have special devices that can give a more accurate reading then a human ever could. Hand held medical scanner technology is showing an astonishing breakthrough and can revolutionize home and hospital medicine just as the home thermometer did. These types of devices have already improved the way care is given in the U.S. greatly and can do the same for countries all over the world. The two countries I chose to enter are ones that have been growing rapidly in almost all aspects, China and India. Handheld medical scanners are a real product being used but are very new and do not have much of a history or a company that solely produces them. So what are they? According to David Freeman in the Huffington Posts article “Star Trek's Tricorder Medical Scanner May Become Reality, Thanks To Nanotechnology Breakthrough,” using nanotechnology, physicists in London and Singapore found a way to make a beam of the "T-rays"--which are now used in full-body airport security scanners--stronger and more directional. The advance, which was described in a recent issue of the journal Nature Photonics, could lead to T-ray scanning devices that are smaller and more portable than existing devices. "T-rays promise to revolutionize......

Words: 4090 - Pages: 17