East Asia-People’s Republic of China

– Background– Largest population in world with 1.27 billion – 1/5 of all mankind are Chinese!– Land area of China slightly larger than US– Major player in world politics, permanent member

of the UN Security Council– Dominant culture in East Asia, influencing

religion, art, philosophy, and culture

1949 Mao Zedong led successful Communist revolution which fundamentally changed East Asian politics

– History of centralized empire and strong governmental power punctuated by periods of chaos and disunity

– 19th C Chinese history Western imperialism, unequal treaties, extra-territoriality, revolution, internal upheaval, 100 years of warfare, Chinese Nationalist Revolution 1911 Chinese Communist Revolution 1949

China: Physical Map

Arid China- (Outer China) Tibetan Highlands, Xinjiang province, and Inner Mongolia

– Tibetan Highlands occupies 1/4 of Chinese land area but sparsely populated vast area of high, barren mountainous plateaus averaging

12 K to 15 K feet high source of several great Asian rivers, i.e. Brahmaputra

(India); Mekong (Southeast Asia); Chang Jiang (Yangzi in China); Huang He (China)

around edges are world’s highest mountains, Himalayas, Karakorum, Kunlun Mts..

sedentary farming growing barley, root crops, grazing sheep, goats, yaks in grassy highlands

Chinese political control of Tibet since Yuan Dynasty;independent from 1912-1951

Lamaism (variant of Buddhism) predominant religion of Tibet

Tibetan revolt in 1959 against Chinese rule; Dalai Lama, spiritual leader of Tibetans fled to India where he lives in exile

Tibetan Landscape

– Xinjiang province

north of the Tibetan highlands population of 18 million consists of two large basins- Tarim Basin and Dzungarian

Basin (Juggar Basin) very arid and dry land enclosed by high mountains on three

sides elevation varies from below sea level at the Tufan

Depression to 6,000 feet in other areas

population concentrated around oases along edge of Tarim Basin, fed by snowmelt streams

site of the Old Silk Route from Roman times to 19th with Lanzhou, as the main city of region

PRC opened up irrigated land for state farms growing cotton in the region

other minerals like coal, iron, petroleum found there area historically contested by Russia and China nuclear facilities at Lop Nor, strategically sensitive site

Xinjiang Province

– Inner Mongolia part of China historically and separate from the Mongolian

People’s Republic, a former Soviet satellite located north and west of the Great Wall majority of population are now Han Chinese, much

intermarriage with ethnic Mongolians area received 5 inches of rain per year, too little for most

agriculture traditional life of Mongolian tribes herding sheep and goats,

riding horses and camels, fast disappearing city of Baotou (1.2 million) expanding as an industrial

center producing iron and steel

Humid China (China Proper) core area of China, densely settled south of the Great

Wall also known as China Proper Division between North China and South China

separated by the Qingling Mts which protect South China from bitter cold north winds in the winter.

– North China Plain North China as a continental climate with cold, dry

winters and humid summers flat level land with non-irrigated agriculture practices

in most of the region Northern Chinese people are taller, heavier, have more

Mongoloid features, eat noodles, and speak Mandarin

oxen, mules, donkeys and horses uses as draft animals to plow fields historically

annual precipitation of 17-21 inches of rain per year

Great Wall approximates the 20 inch rainfall line, separating the pastoral people of the steppe from the people who practice sedentary agriculture south of the Great Wall

weather highly variable with droughts and floods frequent

areas dominated by Huang He River, Yellow River, “China’s Sorrow” whose level is higher than the surrounding land!

Huang He has changed courses many times over the years

uplands of North China plain the site of loessland, fertile yellow earth from the Huang He

earthquakes can be enormous problem in North China plain

wartime base came of Mao Zedong in Yenan

North China Plain

– South China warmer climate with abundant rainfall and lush, green, fields sub-tropical, humid climate, punctuated by hills and river

valleys Southern Chinese are shorter, darker, and speak a variety of

regional languages, particularly Cantonese Mandarin increasingly used in South Chinese three major basins of region are the Lower Chang Basin on

the coast; the Middle Chang Basin near Wuhan; and the Red Basin in Sichuan province

Red Basin contains more than 100 million people, very productive and fertile agricultural area with good irrigation going back 2,000 years

Chang Jiang (Yangzi River) is broad and deep with a swift current, navigable by ocean-going ships to Wuhan and Chinese vessels to Chongqing in Sichuan province

Guangzhou Delta (Canton Delta) in south along the Xi (West River)

densely populated area of China today Construction of the Three Gorges Dam to generate

power and control flow of Yangzi River Displacement of 2 million residents

South China

Dujiangyan Irrigation System

– Southeast Uplands area of hilly, low mountains that breaks up the land transportation and communication problems historically an area inhabited by bandits and outlaws agriculture practices along river valleys seafaring tradition of coastal Chinese

– Yunnan and Guizhou provinces high mountainous plateau many hill tribes live in region Guizhou famous for distinctive and beautiful mountains

that attract tourists today

Yunnan and Guizhou

– Manchuria

area northeast of the Great Wall homeland of Manchus who ruled China from 17th to 20th C migration of Han Chinese to Manchuria to engage in

agriculture and farming area of heavy industry, coal, steel, heavy equipment, mining good soils but short growing season, marginal rainfall grow soybeans, kaoling, millet, barley

Manchuria

Urban Areas of China

– Chang Jiang (Yangzi) group: Chengdu (3 mil); Chongqing (7 mil) wartime capital of Nationalist China Wuhan (6 mil) heavy industrial city Nanjing (2.8 mil) former capital of Nationalist China Shanghai (13 mil) the main overseas trading and

commercial center of China and focus of Western interests historically.

– North city group: Beijing (11 mil) capital, administrative, and cultural

center of China; Tianjin (8 mil) main port of Beijing Xian (4 mil),ancient capital of China known as

Chang-an

– Manchurian group Dalian (Port Arthur/Darien) major port for

Manchuria, historically under Russian and later Japanese control

Harbin, a heavy industrial center Shenyang (Mukden) capital of Manchuria and

major rail terminus

South China group Guangzhou (Canton), the major trading/commercial

port of Southern China;

– Hong Kong and Macao Hong Kong was British colony turned over to China in

summer 1997 Financial, commercial, tourist, and manufacturing

center Manufacturing moving to Shenzhen across border Macao, Portuguese colony due to revert back to China

in 1999 Macao, transit trade with China, fishing, and gambling

casinos

China’s Major Cities

Population Policies– Growth of the Chinese population

Chinese Population Density

– Population distribution highly uneven with most population located in humid

eastern part of country from Manchuria to Guangdong high per capita density of population Han Chinese account for 93% of total population government recognizes 55 different minority populations

– Population control Mao Zedong held “pro-natalist” position on population

growth in accordance with Marxist views huge growth in Chinese population led government in

1970 to radically change its policies to reduce population growth

initially government promoted family planning, encouraged couples to marry later, extend intervals of children

in 1979 PRC promoted “one child family” program benefits of following government program include

better living conditions, improve educational opportunities, improved employment opportunities

penalties for not adopting “one child family” include heavy psychological pressure for forced abortions and use of the “granny police.”

program has been successful though momentum of population growth difficult to arrest

repayment of benefits care of elderly parents and “little emperor” syndrome

Economy of China– Agriculture

70% of the labor force engaged in agricultural activity energies focused on production of food crops in western China pastoralism historically dominant, but Han

Chinese now moving to arid west to grow wheat, barley, and maize in oases and river valleys

in southern China and Red Basin, paddy rice is dominant crop; rice terraces common

double cropping common with first rice crop planted in May and harvested in August; second crop planted in August and harvested in November

agriculture in northeast productive and more mechanized, growing wheat, maize and kaoling

rice rotated with maize and interplanted with vegetablesin north, winter wheat planted in fall, harvested in spring

broad range of supplemental crops grown for local markets such as vegetables, melons, and soybeans used to make bean curd (tofu)

– Agricultural Reform early years dominated by massive land reform,

transferring land from rich landlords to poor peasants Great Leap Forward and establishment of communes

controlling all aspects of living and production late 50’s resulted in massive agricultural failures due to

bad weather and misguided governmental policies 14 to 26 million people starved to death in famines

responsibility system established in 1978 with peasants obligated to produce a specific amount of crops sold at regulated prices; additional production over this amount sold at market prices by producers who can keep the revenue

major increase in income of rural farmers

– Industry and Regional Growth industrial production secondary to agricultural

development goal was to achieve regional self-sufficiency and

equitable geographical distribution of industry PRC well endowed with raw materials and minerals large production of coal in Loess Plateau significant producer of oil in Manchuria, northern

Chinese border area

large producer of iron ore but its grade is not high produces tin, zinc, and other minerals centralized planning located industrial sites at Baotou,

Xian, Lanzhou, Wuhan, Chongqing, and Chengdu most centralized industries not efficient, high labor and

welfare costs, poor quality goods dramatic industrial changes in 70’s with small to medium

size firms allowed to become more responsive to market conditions

state-owned firms shedding surplus industrial labor, creating hardship on workers who lose pensions and health care

regions given more autonomy to produce products foreign investment pushed by CCP authorities reversing

hostile attitude toward foreign firms

Special Economic Zones (SEZ’s) created in 1979 to increase production and exports

favorable tax benefits for foreign firms, cheap labor, government support of infrastructure

Shenzen, Xiamen, Shanghai particularly successful located on coast

Hong Kong transferred to PRC in July 97 PRC following a policy of “one country; two systems”,

allowing Hong Kong significant political autonomy so as to not kill the goose that laid the golden egg

China enjoying explosive economic growth as a result of reforms of Deng Xiaoping- 10-12% per year

Hu JintaoGeneral Secretary of the

Chinese Communist Party

– Contrast of Beijing and Shanghai Beijing, the center of government and administrative importance of Forbidden City and Tiananmen Square typified traditional Chinese outlook as a conservative,

orderly, ethnocentric culture Shanghai represents outward-looking and commercial

nature of Chinese situated at delta of Chang Jiang and center of trade and commerce

Pudong industrial area favored by CCP authorities, booming growth and construction Shanghai World Financial Center will be tallest building in the world after the year 2000

– Hong Kong Hong Kong ceded to Britain in 1842 as a result of the

disastrous Opium War with China HK consists of Hong Kong island, several smaller

islands and the New Territories on China mainlandHK historically served as a major trading entrepot for East Asia

HK lost its commercial links to China after the Communist Revolution in 1949

HK embarked on a very successful shift to manufacturing inexpensive consumer goods for the export market, i.e. ivory carvings, jade, jewelry, Chinese furniture

entrepreneurs from Shanghai set up textile and other factories in HK using cheap labor after 1950

HK also produced cheap consumer goods like toys, plastic products, watches, low cost electronics

HK later developed into a major global banking and financial center

sons and daughters of HK studies finance and banking at US / UK institutions

high income also derived from tourism Britain agreed to transfer HK to China in July 1997

initially some capital flight and human flight to Singapore, Vancouver, BC and other Chinese cities

most HK residents stayed in place China took over HK on the basis of the formula of “one

country; two systems”allowed HK to maintain its own political and economic system

HK practices a free-wheeling brand of capitalism with very low taxes, good business environment, and

strong governmental support for business HK now serving as a model for future PRC growth Chinese unwilling to kill the chicken that lays the golden

eggs Macao, Portuguese enclave on China mainland,

scheduled to return to China in 1999

JapanBackground

– Japan is the richest country in Eastern Asia– isolated from rest of the world under Tokugawa rulers

until arrival of Commodore Perry in 1850’s– after initially opposing modernization and development,

Japan under Meiji emperor promoting economic growth and development

– rapid economic growth in 19th and 20th C– democratic development of Japan into 1920’s then rise of

militarism that led to WW II– dramatic post-war economic growth in Asia

– Japan is a relatively small country about the size of Italy or Montana

– Japan consists of four main islands—Hokkaido, Honshu, Shikoku, Kyushu and several smaller islands i.e. Ryukyu Islands to south and Bonin Islands to west.

– Lost control over Kurile Islands and Sakhalin after WWII

– think of Japan as an industrial giant with crowed cities, bustling ports, modern factories, clogged highways

– Japan also a land of soaring mountains, fiery volcanoes, etched valley, and fast flowing rivers

– 40 active volcanoes today– located in active earthquake zone. Tokyo

earthquake (8.2) in 1923 killed 140,000 people; quake in Kobe in 1995 (7.2) killed 5,000 people

– 75% of land area mountainous with slopes of 15 degrees or more

Japan: Physical Map

Kanto Plain

Nobi Plain

Niigata Plain

Osaka Plain

Main Regions of Japan

– Hokkaido northernmost island with over 20 percent of the land but

only 5 percent of the Japanese population produces only 3.8 percent of total GDP island is hilly with poor accessibility until recently direct rail link through the Seikan tunnel under the

Tsugaru Straits improved air services benefiting economy of the island fishing, coal mining, and forestry traditional economic

activities

farming based on new breeds of rice together with dairying and other crops replacing traditional industries

new manufacturing enterprises include wood processing, some shipbuilding, and an oil refineries

tourism expanding since 1972 Winter Olympics at Sapporo

– Northern Honshu northernmost Honshu (Tohoku) has a relatively sparse

population 8 percent of the total population on 18 percent of the

land density of population is twice that of Hokkaido central mountains make crossings between east and

west difficult

region is Japan's leading rice producer with 25 percent of the total crop

rice farming on reclaimed coastal lands fishing and forestry also important since the 1960s, government has encouraged manufacturing

in the region

– Central Honshu Tokyo region (Kanto) is the heart of Japan in terms of

population and economic activity 31 percent of the population produces 37 percent of

Japanese GDP on under 10 percent of the land cities of Tokyo, Kawasaki, and Yokohama fuse into a

huge urban complex around Tokyo Bay Tokyo, center of finance and other service industries

Yokohama, Japan's busiest port oil refineries, steel mills, chemical plants, and power stations

along the waterfront Kanto plain around Tokyo still grows much rice fruit, vegetables, poultry, and pigs are also produced for the

nearby markets volcanic mountains nearby used for winter sports facilities;

hot springs attract tourists Kawasaki, center of heavy industry 1997 Winter Olympics in Ngano in mountains Chubu region to west and north of Tokyo more mountainous

northern coastal section facing the Japan Sea is major rice-growing district

highway and rail links built through Japanese "Alps." industrial corridor along Pacific coast connects cities along

the "bullet train" (shinkansen) and major highway routes Nagoya, Japan's fourth largest city and the center of a

textile region that also makes autos (Toyota), oil refining, petrochemicals, and engineering industries.

– Southern Honshu Southern Honshu is Japan's second most prosperous region mountains include national parks like Mount Fuji, Japan's

highest peak (12,300 ft.), Chubu leads the country in hydroelectricity generation

three cities dominate the eastern part of this region Kyoto, (1.5 mil) cultural center and former imperial capital,

center of craft industries such as silk, pottery, and traditional furniture.

Osaka, the third largest city with (2.5 mil), commercial center Kobe, seventh largest city with (1.5 mil), major industrial

port on Osaka Bay. area changed from a center of textile manufacturing to major

center of iron and steel, chemicals, and shipbuilding, oil refining, petrochemicals, and auto making

– Shikoku Shikoku is a mountainous, small island with only 5 percent

of Japan's land island has a warm, moist climate, but is isolated by

mountains northern coasts facing the Inland Sea have been irrigated for

crops; some industrialization as well infrastructure investments in bridges are helping to connect

the island with the rest of Japan.

– Kyushu Kyushu is the westernmost island and is connected by tunnel

to Honshu 2/3’s of the island's population is concentrated in the

northern region around Fukuoka and Kitakyushu center of metal, chemical, and shipbuilding industries farming and fishing remain important

considerable rice grown in region double cropping possible mandarin oranges, tobacco, and livestock are produced on hills Kyushu attracted high-tech industries in 80’s

– Ryukyu Islands Ryukyu Islands including Okinawa extend 650 miles southward

toward Taiwan. islands still have American military bases located next to traditional fishing and agricultural settlements

increasing pressure for U.S. military personnel to leave Okinawa

Japanese Cities

Population

– total population increased from around 90 million in 1960 to 125 million in 1995, combination of low fertility and low population growth rates will cause the total to peak around 128 million 2000

– infant mortality at 5 per 1,000 live births is the world's lowest rate

– life expectancy at 79 years is the world’s highest rate– Japan is in the final stage of demographic transition– aging of the population affects pension provision, medical

costs, and leisure provision for the retired– aging of population also increases firms' wage costs as

more employees reach senior positions

–government concerned that there will not be enough labor for industry or funds to support retired elderly people

Urbanization– Japan changed from a largely rural country with a few

industrial towns in 1920’s to an urban country where three-fourths of population live in cities in 1990’s (85% of population rural farmers in Meiji; 45% rural farmers in 1945; now only 3%)

– 40 percent of the population now lives in the urbanized zone between Tokyo and Osaka known as the Tokaido megalopolis

– largest cities are Tokyo (26 million), Yokohama (3.2 million), Osaka (11 million), Nagoya (2 million), and Kyoto and Kobe (both 1.5 million).

– Japanese population is remarkably uniform in race and language

– status of women changing with a greater involvement in the labor force

– more older women entering the labor force– full equality for women still not achieved– women work for lower wages, few attain management

positions, or lifetime employment status.

Economic Development– Japanese economy experienced massive changes after

World War II– from 1960 to 1990 farming, fishing, and mining—the

primary sector of the economy—declined from 33 to 8 percent of the work force

– service sector rose from 38 to 58 percent– manufacturing sector restructured to include more high

tech industries as well as heavy industry

– wartime reforms included dismantling of the military-industrial war economy, breakup of the zaibatsu (large financial combines), land reform in the rural areas

– agriculture remains a significant sector of the economy with strong government support

– rice still costs Japanese consumers six times what Americans pay, and thirteen times what Thais pay

– subsidies to Japanese farmers and tariff protection from world market competition. Japanese people are willing to pay higher prices because they believe their rice is better in quality than imported rice.

– manufacturing was the basis of modern Japanese growth in 19th C

– Japanese monarchy and samurai leaders saw modernization as the only way of resisting colonialism and make Japan competitive

– factories were built in the zone from Tokyo to Nagasaki– heavy industries such as iron and steel, shipbuilding, and

engineering. mining, and textiles were major industries in Japanese growth

– government-business links, cheap labor, large numbers of small businesses, and growing infrastructure assured growth

– increasing military production after Sino-Japanese War in 1895 and Russo-Japanese War in 1905

– production of naval ships, air force planes, and other military equipment culminated in World War II

– after the Korean War in early 1950s, the US poured money into Japan to rebuild its industries and infrastructure

– America an important market for Japanese products– improved transportation technology made it possible to

bring large quantities of oil, coal, and iron ore from the Middle East and Australia at low cost for Japanese industry

– cheap raw materials and low-cost labor force enabled Japanese manufactures to undercut heir rivals in the world's core countries and gain overseas markets

– Japanese government (MITI-Ministry of International Trade and Industry) became centrally involved in assisting and advising industry

– Japan very dependent on imported oil for 70 percent of its energy needs

– Japanese now place greater reliance on internal energy sources such as hydroelectricity and nuclear power for energy

– high levels of technology for production enable Japanese firms to compete in world markets

– Japan changing from a country of producers to a country of consumers

– policy of exporting so successful that other countries like US have run huge deficits of payments to Japan

– value of the Japanese yen currency doubled in 80’s, making Japan's exports more costly and less competitive

– imports became cheaper and consumer demand rose, more luxury and prestige goods were sold and Japanese manufacturers moved into these fields, competing with imported goods.

– older industries such as steel, shipbuilding, petrochemicals, and cement-making suffered overcapacity on world markets and competition from newly industrializing countries such as South Korea

– Japan has moved great deal of production to offshore SE Asia to reduce costs but it has consequences for employment in Japan

– competitive pressures from Asian Tigers (Korea, Taiwan, Singapore, Hong Kong) have led to factories closing in Japan; increase in Japanese investment in China and Southeast Asia

– Japan needs to stimulate its economy today to provide an engine of growth for domestic market and weak Asian markets

– effect of the “bubble economy”, prolonged recession and slow growth

Social/Economic Problems– automobile traffic, small streets, congestion– unplanned sprawl of cities, strip malls, noise, pollution– problem of housing cost and space

– Japanese living space relatively small compared to US or Europe. US houses typically 2 1/2 times larger

– housing costs 5.7 times a family income in Japan; in US 3.4 times family income; land expensive

– industrial pollution major problem in the 60’s and 70’s; Japanese government has spent billions of yen to clean up sewage, rivers, and the Inland Sea

– high food prices for domestic consumption

Korea Background

– Korea was unified state since 7th C, sometimes invaded, often forced to pay tribute, but never destroyed as a political entity

– unfortunate geographical position between three powerful neighbors, i.e. China, Japan,and Russia

– tributary state of China until 19th C– Developed its own culture and traditions– invaded by Toyotomi Hideyoshi twice in 16th C– focal point of Sino-Japanese War in 1985

– part of expanding Japanese empire in 1910– occupied by Soviet Union in the north and United

States in the south– two separate states emerged when reunification

efforts failed, i.e. Democratic People’s Republic of Korea (North Korea) and Republic of Korea (South Korea)

– Korean War 1950 fought to a stalemate after PRC intervened in conflict and drove US forces back across 38th parallel

– both sides heavily fortified with large standing armies

Contrast Between Two Koreas– North Korea has larger area (46,500 square miles) but

smaller population with 23 million– South Korea has smaller area (38,000 square miles)

with a population of 48 million– South Korean political rule has fluctuated between

repressive military governments and attempts at civilian democracy. Kim Dae Jung, President

– South Korean has a thriving capitalist market economy with strong economic growth

– North Korea has been a rigidly controlled Communist dictatorship under Kim Il-sung. (Kim Jong-Il, his son now rules North Korea)

– both states mountainous and hilly, but North Korea more rugged than South Korea

– most lowlands found on western side of peninsula– both countries rise toward eastern side of peninsula– North Korea has humid continental long summer type

of climate. Very cold in winter– South Korea has mostly a humid subtropical climate

with shorter winters and longer growing seasons– both influenced by monsoon climate conditions with

heavy rain in summer– South Korea able to double crop irrigated rice– North Korea grows corn as supplemental crop

– most non-agricultural natural resources located in North Korea i.e. coal, iron, ore, other metallic ores, forest products and hydroelectric potential.

– North Korean economy has poorly performed due to heavy Communist controls and lack of incentives

– South Korean economy boomed in 70’s and 80’s to become one of the Asian Tigers

– South Korea exports electrical equipment and electronics (Samsung), automobiles (Hyundai), and iron and steel products from modern plants north of Pusan

– shipbuilding industries have flourished in South Korea

– per capita incomes has increase in South Korea from $100 in 1963 to $8,200 in 1996

– mechanization of agricultural in South Korea freed farm workers to work in factories producing goods for export

– US markets crucial to South Korean success– import-substitution strategy protected Korean

domestic industries from foreign competition while industrial development concentrated on exporting

– Seoul, capital of South Korea, also primary industrial area; Pusan and Kwanju also important industrial sites

– price of South Korean development very high– working conditions in factories are poor, working

hours are long for low pay, quality of life for workers less than desirable

– governmental control over business activity has led to widespread corruption and crony capitalism with large corporations in close collusion with the government

– chaebols like (Samsung and Hyundai) are South Korean mega corporations that account for almost 70% of Korea’s GNP

Taiwan Background

– historically island of Taiwan has been a part of China

– Jiang Kaishek leader Nationalist China fled to Taiwan in 1949 after the Communist won the Chinese civil war

– took whole government, national treasures, to Taiwan

– maintained the fiction that Taiwan (ROC-Republic of China) represented the people of the mainland

Chiang Kai-shek

– US had bilateral defense treaty with ROC to protect them from invasion by the mainland

– UN recognized Taiwan as occupying the seat of China until 1971

– US recognized the PRC as the legitimate government of China in 1978; prestige of ROC declined as a result

– issue of Taiwan still complicates US-PRC relations

Population– most people are Han Chinese who were born on

mainland or have ancestors in PRC– native Taiwanese speak Taiwanese (Min)– Hakka Chinese and small aboriginal population

Climate– subtropical to tropical in the south– mild winters and hot summers– rain from October to March– southwest monsoon in summer with typhoons

from June to October

Economy– economic growth of ROC spurred by US investment– land reform in Taiwan helped to stimulate

agricultural production– ROC has a diversified economy today based on

heavy industry, iron/steel, textiles, and chemicals– produces electronic parts, personal computers,

precision instruments, telecommunication equipment, machine tools for export

– highly educated labor force

– Taipei is political, economic, and cultural capital– Kaosiung is a major industrial center– GNP about $12,000 per year– Taiwan classified as a NIE (Newly Industrializing

Economy)– agricultural on fertile western plains and basins– rice is major food crop– overseas fishing fleet fishes Pacific– largest amount of trade with US, Hong Kong, and

Japan; increasing trade with PRC

– significant ecological problems with air pollution from non-leaded gasoline in cars, deforestation of mountains and hillsides, and eradication of some species of animals for Chinese medicines

Political Dynamics– Taiwan has a fledging democracy with relatively free

elections– constitution of Taiwan changed in 1994 to require a

direct election of the President of Taiwan– Lee Teng-hui, the first popularly elected President

not from the mainland

– debate over the future of ROC– is unification with PRC possible on the basis of

“one country two systems” like Hong Kong.– political problems of annexing Taiwan are more

complicated than they are for Hong Kong

Chen Shui-bian

Tenth-term President of the Republic of China