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International Relations of the Asia-Pacific Advance Access originally published online on March 11, 2009
International Relations of the Asia-Pacific 2009 9(3):435-467; doi:10.1093/irap/lcp001
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© The author [2009]. Published by Oxford University Press in association with the Japan Association of International Relations; all rights reserved. For permissions, please email: journals.permissions@oxfordjournals.org

Commerce between rivals: realism, liberalism, and credible communication across the Taiwan Strait

Steve Chan

Department of Political Science, University of Colorado, 333 UCB, Boulder, CO 80309-0333, USA
Email: steve.chan{at}colorado.edu

China has become Taiwan's most important export and investment destination. This phenomenon is puzzling to realism as concerns for security externalities should discourage commerce between adversaries. Liberalism also has difficulty in accounting for this phenomenon because an absence of facilitative institutions should discourage commerce across the Taiwan Strait. This paper applies recent theoretical development on credible communication to this seemingly baffling situation. Whereas it has been suggested that commercial ties enable states to signal resolve short of military demonstration, I argue that these ties can also be used to credibly communicate reassurance and commitment to peaceful cooperation.

Received for publication July 10, 2008. Accepted for publication February 12, 2009.


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