On Monday, Vice President Annette Lu (呂秀蓮) pointed out that the two biggest challenges facing the government are sinicization and the international marginalization of Taiwan.
Lu's definition of "sinicization" encompasses more than the cultural and social aspects, because it also stresses the economic aspects. In this regard, she is definitely right.
There are those who will probably question what is the difference between "economic sinicization" and "economic integration?" Isn't economic integration precisely the core of free trade, which happens to be the goal of organizations such as the WTO?
The problem is that "integration" is the combining of parts into a larger whole. After integration takes place, something new is produced. This is different from having one part taken over or engulfed by another part, which is exactly what happens with sinicization. What is taking place across the Taiwan Strait is an "economic sinicization," rather than an "economic integration." The flow of capital, technology, know-how and manpower is almost entirely one way -- from Taiwan to China. When Taiwan's economy is sucked dry, it will collapse, while the Chinese market continues to thrive.
Moreover, all the economic integrations taking place in other parts of the world will not bring upon the participating countries the kind of destruction economic sinicization will bring to Taiwan if it is allowed to continue at the current rate -- political extinction and a sovereignty crisis. There are many reasons why economic sinicization could have a devastating impact on Taiwan.
First and foremost, China has never ceased being open and up front about its intention to take Taiwan over, even if force must be used to bring Taiwan to its knees. Many optimists believe that, despite its refusal to denounce the use of force against Taiwan, China couldn't possibly attempt a takeover because of the foreseeable devastation it would do to Taiwan's economy. After all, a rich and wealthy Taiwan could only be good for Chinese economic development, so they think. But, if the economic sinicization continues at the current rate, Taiwan will eventually lose its economic value. Will China care about any potential economic losses to Taiwan then? Even Vice President Lu has indicated that there have always been those in the Chinese military who believe that Taiwan's economy can always be rebuilt after Taiwan is united with the motherland.
Secondly, the economic sinicization over the past years has hastened the cultural and social sinicization of Taiwan, further aggravating the identity crisis in Taiwan. Now, despite all the complaints about the invasion of Western pop culture, no amount of economic integration with the West can turn such integration into a threat to the host countries' political identity. Economic sinicization can have such a unique impact on Taiwan not only because of historical cross-strait ties, but also because of the past KMT regime's education of the Taiwanese people.
As for the international marginalization of Taiwan, China of course deserves the most thanks. Not only is Taiwan the only country in the world excluded from the UN, it also continues to be an outcast from the WHO. In terms of diplomacy, Taiwan can't even make any breakthroughs in Asia, let alone other parts of the world. Not only does Taiwan not have a formal diplomatic relationship with any country in Asia, but the fact that China has reached an agreement with ASEAN members to establish the largest free-trade zone in the world can only marginalize and isolate Taiwan further.
While Lu's remarks may be on the mark, very few people in Taiwan are listening.
The conflict in the Middle East has been disrupting financial markets, raising concerns about rising inflationary pressures and global economic growth. One market that some investors are particularly worried about has not been heavily covered in the news: the private credit market. Even before the joint US-Israeli attacks on Iran on Feb. 28, global capital markets had faced growing structural pressure — the deteriorating funding conditions in the private credit market. The private credit market is where companies borrow funds directly from nonbank financial institutions such as asset management companies, insurance companies and private lending platforms. Its popularity has risen since
The Donald Trump administration’s approach to China broadly, and to cross-Strait relations in particular, remains a conundrum. The 2025 US National Security Strategy prioritized the defense of Taiwan in a way that surprised some observers of the Trump administration: “Deterring a conflict over Taiwan, ideally by preserving military overmatch, is a priority.” Two months later, Taiwan went entirely unmentioned in the US National Defense Strategy, as did military overmatch vis-a-vis China, giving renewed cause for concern. How to interpret these varying statements remains an open question. In both documents, the Indo-Pacific is listed as a second priority behind homeland defense and
Every analyst watching Iran’s succession crisis is asking who would replace supreme leader Ayatollah Ali Khamenei. Yet, the real question is whether China has learned enough from the Persian Gulf to survive a war over Taiwan. Beijing purchases roughly 90 percent of Iran’s exported crude — some 1.61 million barrels per day last year — and holds a US$400 billion, 25-year cooperation agreement binding it to Tehran’s stability. However, this is not simply the story of a patron protecting an investment. China has spent years engineering a sanctions-evasion architecture that was never really about Iran — it was about Taiwan. The
After “Operation Absolute Resolve” to capture former Venezuelan president Nicolas Maduro, the US joined Israel on Saturday last week in launching “Operation Epic Fury” to remove Iranian supreme leader Ayatollah Ali Khamenei and his theocratic regime leadership team. The two blitzes are widely believed to be a prelude to US President Donald Trump changing the geopolitical landscape in the Indo-Pacific region, targeting China’s rise. In the National Security Strategic report released in December last year, the Trump administration made it clear that the US would focus on “restoring American pre-eminence in the Western hemisphere,” and “competing with China economically and militarily
RSS