Discuss the Advantages and Disadvantages for Taiwan of Closer Essay

Discuss the Advantages and Disadvantages for Taiwan of Closer Cross-Strait Economic Relations - Essay Example Even the growth that is boosted by the economic affiliation does not reduce the threats and political confrontation between these two countries. As this relationship between the two politically contravening countries turn to the extent of interdependency upon each other, significant threats are perceived on the part of Taiwan. The country considers the economic interdependency with China as dangerous to its political sovereignty and prosperity because of traditional conflicts. However, it is not easy for the country to revert its trade relations with China due to the support it provides to the economic development of the country. Understandably, this association is not only beneficial for China but also for Taiwan. This paper examines the advantages of this economic relationship in the perspective of both the countries and investigates the threats as perceived by Taiwan concerning the political future of the country. The trade and investment relations between China and Taiwan happen to have been initiated and promoted by a wide variety of economic as well as environmental factors. Roy (2004, p2) suggests that â€Å"the forces propelling cross-Strait economic relations are obvious: close geographic proximity, a common language and culture, and in some cases ancestral ties†. The major factors responsible for rising cross Strait relationship are the strong cultural and social bonds shared by the two countries. People tend to communicate with each other with great ease and geographical location of these countries is also favourable for closer trading activities. These are some environmental factors that could be deemed as the ones driving staunch economic relationship between China and Taiwan. However, this does not tend to be the only reason behind the growing economic relations between the two countries. There happen to be