The Political Economy of Greater China

Since 1979, China has made tremendous progress in its economic reforms, and in these developments Hong Kong and Taiwan have beeen most deeply involved, so much so that the three economies have been collectively called ‘Greater China’. This article investigates the integration process from the perspective of the political economy, pointing out the promises as well as the problems. The author is cautiously optimistic about the future, provided that far-sightedness can prevent any dominant urge for short-term profits and political compulsion. The logic of economic interests seems power enough to ensure that even the more formidable political barriers can eventually be overcome. As a result, Greater China looks likely to be increasingly open to the rest of the world.