Breaking the ice: the origins of Taiwan's economic diplomacy towards the Soviet Union and its European allies

Abstract

For two decades the Soviet bloc made a concerted effort to normalise relations with the People's Republic of China (PRC). Once this had been accomplished in 1989, the systemic changes in the Soviet bloc and the tragedy of 4 June diminished the ideological and geo-strategic significance of friendship with the PRC. In this context Taiwan faced an unprecedented opportunity to present itself to the states in transition not only as a democratic and economically developed alternative to China but also as a significant source of investment and an attractive trade partner. Was Taiwanese diplomacy flexible enough to recognise this opportunity and exploit it to enlarge Taipei's international space? This article will attempt to address the above question by focusing on Taiwanese economic diplomacy towards East Central Europe (ECE), the Soviet Union (USSR) and its successor states. The analysis will commence in 1987, when overt Taiwanese interest in entering communist markets was soon reciprocated by reformist Hungary, and end in late 1991, when the Commonwealth of Independent States (CIS) emerged from the Soviet ruins and Taipei conclusively abandoned its anti-communist phobias when interacting with the former communist states. © 2004 University of Glasgow.