29 Jun Inadvertently Aiding Your Enemy: The Backfiring of China’s Economic Pressure on Taiwan

Ignacio Hitt

School of Politics, Economics, and Global Affairs. IE University, Madrid, Spain.

Dual Bachelor’s Degree in Laws and International Relations.

E-mail: ihitt.ieu2023@student.ie.edu, nachohitt@gmail.com.

Abstract

In recent years, Chinese economic warfare against the self-governing island of T aiwan has intensified, with Beijing

employing trade embargoes and economic coercion on other states in an effort to isolate T aiwan diplomatically and

destabilize its economy. In response to this, T aiwan has employed a strategic response that has led to a counterintuitive

effect for China, one in which their rivals actually grow stronger in the face of Beijing’s attempts to assert its influence. By responding to China’s economic pressures through diversified trade and internal development, Taiwan has grown in their global standing, aligning themselves closer to many of China’s rivalling influences in the Indo-Pacific region. Nevertheless, as China continues its economic expansion, the long-term sustainability of Taiwan’s response strategy remains to be seen, and the shift of the geopolitical landscape depends on it.

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Keywords: China-Taiwan Conflict, Strategic Miscalculations, Economic Coercion, T rade Diversification, Global Supply Chains