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Please contact your bookseller or, in case of difficulty, write to us at the address below with your name and address, the title of the series and the ISBNs quoted above. Customer Services Department, Macmillan Distribution Ltd, Houndmills, Basingstoke, Hampshire RG21 6XS, England Cross-Taiwan Strait Relations in an Era of Technological Change Security, Economic and Cultural Dimensions Edited by Paul Irwin Crookes Lecturer in the International Relations of China, School of Interdisciplinary Area Studies, University of Oxford, UK Jan Knoerich Lecturer in the Economy of China, Lau China Institute, King’s College London, UK In Association with St Antony’s College, Oxford Selection and editorial matter © Paul Irwin Crookes and Jan Knoerich 2015 Remaining chapters © Respective authors 2015 Softcover reprint of the hardcover 1st edition 2015 978-1-137-39141-4 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No portion of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6–10 Kirby Street, London EC1N 8TS. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The authors have asserted their rights to be identified as the authors of this work in accordance with the Copyright, Designs and Patents Act 1988. First published 2015 by PALGRAVE MACMILLAN Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited, registered in England, company number785998, of Houndmills, Basingstoke, Hampshire RG21 6XS. Palgrave Macmillan in the US is a division of St Martin’s Press LLC, 175 Fifth Avenue, New York, NY 10010. Palgrave is the global academic imprint of the above companies and has companies and representatives throughout the world. Palgrave® and Macmillan® are registered trademarks in the United States, the United Kingdom, Europe and other countries. ISBN 978-1-349-48297-9 ISBN 978-1-137-39142-1 (eBook) DOI 10.1057/9781137391421 This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. Logging, pulping and manufacturing processes are expected to conform to the environmental regulations of the country of origin. A catalogue record for this book is available from the British Library. A catalog record for this book is available from the Library of Congress. Contents List of Figures and Tables vii Acknowledgements viii Notes on Contributors ix 1 Cross-Taiwan Strait Relations in an Era of Technological 1 Change: Introduction Elisabeth Forster and Jan Knoerich 2 Post-Election Cross-Strait Relations: High Hopes and Low 16 Expectations Steven M. Goldstein 3 Technological Change and China’s Naval Modernization: 41 Security Implications for Taiwan Elizabeth Freund Larus 4 Taiwanese Business in Mainland China: From Domination 61 to Marginalization? Shelley Rigger 5 Do Mainland Chinese Firms Transform towards ‘Indigenous 77 Innovation’? The Paradox of Increasing Economic Integration across the Taiwan Straits Ching-Jung Tsai 6 The Role of High Technology in Mainland China’s 96 Outward Investment into Taiwan: Economic, Security and Cultural Dimensions Jan Knoerich 7 Cross-Strait Cyberspace: Between Public Sphere and 118 Nationalist Battleground Jens Damm 8 From Politics to Culture: Taiwanization Discourses and 147 the Techno Nazha Performance Fang-long Shih v vi Contents 9 Bridging the Cultural Gap across the Taiwan Strait – 164 Lung Ying-tai and the Case of the Magazine Freezing Point Kelvin Cheung 10 Technological Change and Cross-Strait Dynamics in the 178 21st Century Paul Irwin Crookes Index 191 List of Figures and Tables Figures 3.1 Map of China’s first and second island chains of defence 44 3.2 China’s official defence budget (USD billion) 48 4.1 Taiwan’s annual trade with, and approved investment 62 in, mainland China (USD billion) 5.1 Global development and adoption of telecommunication 78 standards 5.2 Mainland China’s electronics imports (USD billion), 2010 84 6.1 Cross-Strait direct investment in an era of technological 100 change 6.2 Outward FDI from mainland China and Taiwan, 1982–2012 102 Tables 3.1 Comparison of total Chinese and US naval assets, 50 March 2014 3.2 Taiwan Strait military balance, naval forces, 2013 53 5.1 Chinese R&D expenditures, USD billion and ratio to 80 GDP (%), 2001–11 5.2 Mainland China’s top ten companies ranked by sales, 2008 81 5.3 China Mobile’s investment in the TD-SCDMA network 82 5.4 The market share of mainland China’s top ten handset 85 providers (3G), 2010 6.1 Mainland Chinese and foreign direct investment into 103 Taiwan between 2009 and June 2014 6.2 Number of sectors opened up to mainland Chinese 106 investments in three stages vii Acknowledgements A number of people and organizations have given invaluable support in bringing this book into being and we are most grateful to all of them. In particular, we would like to extend our sincerest thanks to the Taiwan Studies Programme and the Asian Studies Centre of St Antony’s College, University of Oxford for their generous funding throughout every stage in the development and preparation of this book. We are especially grateful to Professor Rosemary Foot and Dr Faisal Devji at St Antony’s College, whose enthusiastic support for the original idea of this project and wise counsel on how to carry it through to fruition were so helpful to us both. We would also like to thank Elisabeth Forster, whose unstinting effort and close attention to detail as our editorial assistant has done so much to ensure the high quality of the final result. Finally, we want to thank our contributors, whose research expertise and unique insights have made the task of collating this edited volume such a pleasurable learning experience. Paul Irwin Crookes Jan Knoerich October 2014 viii Notes on Contributors Kelvin Cheung is an Assistant Professor at the Department of Asian and Policy Studies, Hong Kong Institute of Education. He received his PhD in Chinese politics at the University of Manchester. His researches focus on Chinese nationalism, identity politics, cross-Strait relations and political Confucianism. Currently, he is working on a book manu- script that examines the role of nationalism in the political integration of Greater China. Jens Dammreceived his PhD from the Faculty of History and Cultural Studies, Freie Universität Berlin, in 2004. He is also an Associate Fellow at the European Research Center on Contemporary Taiwan (ERCCT) at Tübingen University and a board member of the European Association of Taiwan Studies (EATS). His research is mainly focused on discourses on gender and ethnicity-related issues in Taiwan, Greater China includ- ing the PRC, and on the impact of new communication technologies. Elisabeth Forsteris Departmental Lecturer in Modern Chinese History and Politics at the University of Oxford. Her research focuses on Chinese history in the early 20th century. She is particularly interested in the nexus of academic discourses, media coverage and political activism during China’s May Fourth and New Culture Movements, as well as in subjective perceptions of Chinese-foreign interactions at the time. She has recently published in the journal Frontiers of History in China. Steven M. Goldsteinis the Sophia Smith Professor of Government at Smith College and the director of the Taiwan Studies Workshop at Harvard University. He has been a visiting faculty member at the Fletcher School of Law and Diplomacy and Columbia University. In the spring of 2012 he was Van Beuren Chair Distinguished Visiting Professor at the Naval War College. He has published on issues of Chinese domestic and foreign policy and his current research focus is on the relations between the mainland and Taiwan as well as the evolution of U.S. -Taiwan relations. ix