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The Tiger Leading the Dragon

How Taiwan Propelled China's Economic Rise

Shelley Rigger

How did the once-secretive, isolated People’s Republic of China become the factory to the world? Shelley Rigger convincingly demonstrates that the answer is Taiwan. She follows the evolution of Taiwan’s influence from the period when Deng Xiaoping lifted Mao’s prohibitions on business in the late 1970s, allowing investors from Taiwan to collaborate with local officials in the PRC to transform mainland China into a manufacturing powerhouse. After World War II, Taiwan’s fleet-footed export-oriented manufacturing firms became essential links in global supply chains. In the late 1980s, Taiwanese firms seized the opportunity to lower production costs by moving to the PRC, which was seeking foreign investment to fuel its industrial rise. Within a few years, Taiwan’s traditional manufacturing had largely relocated to the PRC, opening space for a wave of new business creation in information technology. The Tiger Leading the Dragon traces the development of the cross-Taiwan Strait economic relationship and explores how Taiwanese firms and individuals transformed Chinese business practices. It also reveals their contributions to Chinese consumer behavior, philanthropy, religion, popular culture, and law.

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Rowman & Littlefield Publishers
Pages: 236 • Trim: 6⅜ x 9½
978-1-4422-1958-8 • Hardback • June 2021 • $88.00 • (£68.00)
978-1-4422-1959-5 • Paperback • June 2021 • $33.00 • (£25.00)
978-1-4422-1960-1 • eBook • June 2021 • $31.00 • (£25.00)
Subjects: Political Science / Political Economy, Social Science / Regional Studies, Political Science / World / Asian

A leading authority on Taiwan, Shelley Rigger is Brown Professor of Political Science at Davidson College in North Carolina. She earned a PhD in government from Harvard University and has been studying and visiting Taiwan for nearly four decades. She has been a visiting researcher at National Chengchi University in Taipei and a visiting professor at Fudan University in Shanghai. Her books include Why Taiwan Matters: Small Island, Global Powerhouse, and she consults for the US government on East Asian national security issues.

Preface: The Umbrella King

Acknowledgments

1 How Mao’s China became the “Factory to the World”

2 Taiwan’s “Economic Miracle”

3 “Second Spring”: Taiwan’s Traditional Manufacturers Discover Mainland China

4 From SME to ODM: Taiwan’s Integration into Global Manufacturing Networks

5 The 1990s: From Umbrellas to iPhones

6 The Rise of the Red Supply Chain

7 “Borrowing a Boat to Go to Sea”: Taiwanese Business Practices in China

8 Affordable Luxury: Changing the Way China Eats (and More)

9 Beyond Business: How Taiwanese Are Reshaping Chinese Society

10 The End of an Era?

References

Index

Until now, the contributions by Taiwan to China’s economic, social, and cultural development have not received the attention they deserve. Most research about economic cooperation between these two countries concerns the political implications of their cooperation, investigating whether the integration of the two economies could narrow the political gap between them and eventually lead to unification. In her new book, Rigger argues that the main reason for once-poor, secretive, and isolated China to become the second most important economy in the world has been Taiwan…{T]his book traces the development of the economic relationship between Taiwan and China and explores how Taiwanese companies and their employees transformed Chinese business practices. It also explores the possibility that this transformation may have influenced Chinese consumer behavior toward philanthropy, religion, popular culture, and law. Recommended. Lower-division undergraduates. General readers.


— Choice Reviews


After Taiwan’s labor costs rose in the 1980s and the island’s first democratically elected president lifted the ban on travel to China, many entrepreneurs moved their manufacturing operations to the mainland. They found a warm welcome from a Chinese government that was eager to foster its own export sector. Rigger insightfully relates the good and bad mainland experiences of various businesses, from umbrella manufacturers and bicycle makers to high-tech enterprises such as Foxconn, which produces most of the world’s iPhones; the computer maker Acer; and the Taiwan Semiconductor Manufacturing Company, which makes crucial high-end computer chips. She entertainingly describes how some Taiwanese firms created new markets in China for coffee, noodles, and bridal photos.


— Foreign Affairs


The Tiger Leading the Dragon traces the development of cross-Strait economic integration over the past few decades. The main argument is that Taiwan has played a crucial role in bringing China into the global supply chain network as well as in transforming China’s social development. Shelley Rigger interviewed a wide range of people to provide readers with first-hand information. The book comes out at the right time, when close economic ties between Taiwan and China are about to experience dramatic changes. It offers solid background information for scholars to look ahead amid the volatile political economy across the Strait at present. The analysis and interpretations are coherent, and the real-life stories described in between the academic debates make the entire book an interesting read.


— The China Quarterly


The Tiger Leading the Dragon: How Taiwan Propelled China’s Economic Rise, by US-based academic Shelley Rigger, offers a concise history of business across the Taiwan Strait…. [It] deserves credit for piecing together an interesting history of cross-strait business and cultural relations.


— Taipei Times


A fascinating story of the Taiwan factor in making China the factory of the world. Shelley Rigger’s lively book is a must-read for those interested in the role of Taiwanese enterprises in globalization, past and present.


— Wu Jieh-min, Academia Sinica


This is an insightful study—one that students and scholars seeking to understand the Taiwanese economic miracle and how it connects with China's role as a global manufacturing powerhouse will find immensely useful.


— Chun-yi Lee, European Association of Taiwan Studies


From umbrellas to iPhones and spanning history from the Ming to the present, Rigger offers a sweeping account of how Taiwanese business (Taishang) changed China profoundly over the last four decades. Taishang changed how, where, and what goods were produced in China, what Chinese people ate and even exerted a heavy influence on China's pop music. The Tiger Leading the Dragon, with its entertaining anecdote-filled narrative, provides the most comprehensive account of the multifaceted influence of Taishang on China's economic, social, and cultural transformation.


— Douglas B. Fuller, City University of Hong Kong


  • An entertaining, readable introduction written for a non-specialist readership
  • Traces the development of Taiwan and China’s export manufacturing and how Taiwanese business practices and contracting relationships were transferred to mainland China
  • Details the growth of Taiwan’s IT industry, including TSMC, the world’s largest semiconductor foundry
  • Explains how Taiwanese companies introduced the concept of affordable luxury to Chinese consumers
  • Explores how Taiwanese revitalized philanthropy, religion, popular culture, law, and even speech patterns in the PRC
  • Shows that indigenous Chinese firms are displacing Taiwanese and other foreign-invested companies in the PRC economy
  • Highlights the political consequences of the two sides’ evolving economic relationship


Jordyn Haime's Q&A with author Shelley Rigger about her new book The TigerLeading the Dragon: How Taiwan Propelled China's Economic Rise

https://www.thewirechina.com/2022/03/13/shelley-rigger-on-why-taiwan-matters-so-much-to-the-u-s/



The Tiger Leading the Dragon

How Taiwan Propelled China's Economic Rise

Cover Image
Hardback
Paperback
eBook
Summary
Summary
  • How did the once-secretive, isolated People’s Republic of China become the factory to the world? Shelley Rigger convincingly demonstrates that the answer is Taiwan. She follows the evolution of Taiwan’s influence from the period when Deng Xiaoping lifted Mao’s prohibitions on business in the late 1970s, allowing investors from Taiwan to collaborate with local officials in the PRC to transform mainland China into a manufacturing powerhouse. After World War II, Taiwan’s fleet-footed export-oriented manufacturing firms became essential links in global supply chains. In the late 1980s, Taiwanese firms seized the opportunity to lower production costs by moving to the PRC, which was seeking foreign investment to fuel its industrial rise. Within a few years, Taiwan’s traditional manufacturing had largely relocated to the PRC, opening space for a wave of new business creation in information technology. The Tiger Leading the Dragon traces the development of the cross-Taiwan Strait economic relationship and explores how Taiwanese firms and individuals transformed Chinese business practices. It also reveals their contributions to Chinese consumer behavior, philanthropy, religion, popular culture, and law.

Details
Details
  • Rowman & Littlefield Publishers
    Pages: 236 • Trim: 6⅜ x 9½
    978-1-4422-1958-8 • Hardback • June 2021 • $88.00 • (£68.00)
    978-1-4422-1959-5 • Paperback • June 2021 • $33.00 • (£25.00)
    978-1-4422-1960-1 • eBook • June 2021 • $31.00 • (£25.00)
    Subjects: Political Science / Political Economy, Social Science / Regional Studies, Political Science / World / Asian
Author
Author
  • A leading authority on Taiwan, Shelley Rigger is Brown Professor of Political Science at Davidson College in North Carolina. She earned a PhD in government from Harvard University and has been studying and visiting Taiwan for nearly four decades. She has been a visiting researcher at National Chengchi University in Taipei and a visiting professor at Fudan University in Shanghai. Her books include Why Taiwan Matters: Small Island, Global Powerhouse, and she consults for the US government on East Asian national security issues.

Table of Contents
Table of Contents
  • Preface: The Umbrella King

    Acknowledgments

    1 How Mao’s China became the “Factory to the World”

    2 Taiwan’s “Economic Miracle”

    3 “Second Spring”: Taiwan’s Traditional Manufacturers Discover Mainland China

    4 From SME to ODM: Taiwan’s Integration into Global Manufacturing Networks

    5 The 1990s: From Umbrellas to iPhones

    6 The Rise of the Red Supply Chain

    7 “Borrowing a Boat to Go to Sea”: Taiwanese Business Practices in China

    8 Affordable Luxury: Changing the Way China Eats (and More)

    9 Beyond Business: How Taiwanese Are Reshaping Chinese Society

    10 The End of an Era?

    References

    Index

Reviews
Reviews
  • Until now, the contributions by Taiwan to China’s economic, social, and cultural development have not received the attention they deserve. Most research about economic cooperation between these two countries concerns the political implications of their cooperation, investigating whether the integration of the two economies could narrow the political gap between them and eventually lead to unification. In her new book, Rigger argues that the main reason for once-poor, secretive, and isolated China to become the second most important economy in the world has been Taiwan…{T]his book traces the development of the economic relationship between Taiwan and China and explores how Taiwanese companies and their employees transformed Chinese business practices. It also explores the possibility that this transformation may have influenced Chinese consumer behavior toward philanthropy, religion, popular culture, and law. Recommended. Lower-division undergraduates. General readers.


    — Choice Reviews


    After Taiwan’s labor costs rose in the 1980s and the island’s first democratically elected president lifted the ban on travel to China, many entrepreneurs moved their manufacturing operations to the mainland. They found a warm welcome from a Chinese government that was eager to foster its own export sector. Rigger insightfully relates the good and bad mainland experiences of various businesses, from umbrella manufacturers and bicycle makers to high-tech enterprises such as Foxconn, which produces most of the world’s iPhones; the computer maker Acer; and the Taiwan Semiconductor Manufacturing Company, which makes crucial high-end computer chips. She entertainingly describes how some Taiwanese firms created new markets in China for coffee, noodles, and bridal photos.


    — Foreign Affairs


    The Tiger Leading the Dragon traces the development of cross-Strait economic integration over the past few decades. The main argument is that Taiwan has played a crucial role in bringing China into the global supply chain network as well as in transforming China’s social development. Shelley Rigger interviewed a wide range of people to provide readers with first-hand information. The book comes out at the right time, when close economic ties between Taiwan and China are about to experience dramatic changes. It offers solid background information for scholars to look ahead amid the volatile political economy across the Strait at present. The analysis and interpretations are coherent, and the real-life stories described in between the academic debates make the entire book an interesting read.


    — The China Quarterly


    The Tiger Leading the Dragon: How Taiwan Propelled China’s Economic Rise, by US-based academic Shelley Rigger, offers a concise history of business across the Taiwan Strait…. [It] deserves credit for piecing together an interesting history of cross-strait business and cultural relations.


    — Taipei Times


    A fascinating story of the Taiwan factor in making China the factory of the world. Shelley Rigger’s lively book is a must-read for those interested in the role of Taiwanese enterprises in globalization, past and present.


    — Wu Jieh-min, Academia Sinica


    This is an insightful study—one that students and scholars seeking to understand the Taiwanese economic miracle and how it connects with China's role as a global manufacturing powerhouse will find immensely useful.


    — Chun-yi Lee, European Association of Taiwan Studies


    From umbrellas to iPhones and spanning history from the Ming to the present, Rigger offers a sweeping account of how Taiwanese business (Taishang) changed China profoundly over the last four decades. Taishang changed how, where, and what goods were produced in China, what Chinese people ate and even exerted a heavy influence on China's pop music. The Tiger Leading the Dragon, with its entertaining anecdote-filled narrative, provides the most comprehensive account of the multifaceted influence of Taishang on China's economic, social, and cultural transformation.


    — Douglas B. Fuller, City University of Hong Kong


Features
Features
    • An entertaining, readable introduction written for a non-specialist readership
    • Traces the development of Taiwan and China’s export manufacturing and how Taiwanese business practices and contracting relationships were transferred to mainland China
    • Details the growth of Taiwan’s IT industry, including TSMC, the world’s largest semiconductor foundry
    • Explains how Taiwanese companies introduced the concept of affordable luxury to Chinese consumers
    • Explores how Taiwanese revitalized philanthropy, religion, popular culture, law, and even speech patterns in the PRC
    • Shows that indigenous Chinese firms are displacing Taiwanese and other foreign-invested companies in the PRC economy
    • Highlights the political consequences of the two sides’ evolving economic relationship


    Jordyn Haime's Q&A with author Shelley Rigger about her new book The TigerLeading the Dragon: How Taiwan Propelled China's Economic Rise

    https://www.thewirechina.com/2022/03/13/shelley-rigger-on-why-taiwan-matters-so-much-to-the-u-s/



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