CHANGING TAIWAN'S FOREIGN POLICY: FROM ONE CHINA TO TWO STATES

This article analyzes the development of Taiwan's foreign policy since 1979 from a political economy perspective. Under the general circumstances of international diplomatic isolation, Taipei's foreign policy experienced several stages of change: from an uncompromising adherence to the one-China policy, to a flexible "practical diplomacy" of enhanced participation in nongovernmental organizations, then to a "pragmatic diplomacy" of accepting dual diplomatic recognition of two Chinas, and finally to the "pragmatic diplomacy" of actively pursuing sovereign status under the principle of "divided nation." In the process, the congruence of three structural factors—the emergence of a Taiwanese libertariancivic state, Taiwan's fast growing economic strength, and the disintegration of the cold-war setup—constituted a comprehensive framework for Taipei to direct the development of its relations with the mainland and its foreign relations in a dialectical way that maximized its political autonomy.