JOURNAL OF CHINESE LAW
VOL. 3 FALL 1989 NO. 2

Symposium on Taiwan

PREFACE

In the winter of 1979, the United States shifted diplomatic rela-
tions from Taipei to Beijing. At that time, many international observ-
ers predicted that Taiwan's economic and political stability as well as
its international stature would decline. Yet, Taiwan's economy is
stronger now than it was ten years ago, with Taiwan's treasury hold-
ing roughly 75 billion dollars in foreign exchange reserves, placing it
third in the world behind Japan and West Germany. In international
affairs, Taiwan is gaining formal diplomatic recognition from a
number of countries that had never recognized it before or that had
shifted relations to Beijing. Since the death of former Republic of
China (ROC) President, Chiang Ching-kuo, internal politics have
changed dramatically. First, in July 1987, the government of the
ROC lifted martial law which had been in effect since 1948. Second,
the Kuomintang (KMT), which had long presided over a one-party
system, agreed to accept a multi-party system and to allow the opposi-
tion parties to compete with it for genuine political power. Increas-
ingly open political debate and more searching and penetrating
scholarly inquiry into the legitimacy of government policies and pro-
cedures have accompanied these changes by the KMT. Moreover,
both domestic and foreign parties with economic interests in Taiwan
are demanding greater economic and legal protection.

While the authorities in Taiwan have tolerated demands for
change and effected political and legal reforms, events in the People's
Republic of China (PRO) have regrettably proceeded in the opposite
direction. Even before the tragic and violent events of June 1989, it
was clear that conservative elements in the Chinese Communist Party
leadership were gaining strength in inner party councils. Since the
Tiananmen massacre of June 4, 1989, the Chinese leaders have inten-
sified political control, creating an atmosphere of intimidation in place
of the increasingly open and dynamic climate that had emerged over
the previous decade. Furthermore, the current leadership of the Chi-
nese Communist Party has decided to slow down and even reverse
many economic reforms, curbing the private economy and restraining
the collective sector as well. Reports suggest the likelihood of
increased central economic planning in the future. Curiously, while



JOURNAL OF CHINESE LAW

domestic economic reforms are on hold and political debate is chilled,
official PRC policy continues to promote expanded relationships with
Taiwan. In Taiwan, meanwhile, private interests in the Mainland
continue to grow with tacit government support.

In light of the above-noted developments in Taiwan and in the
Mainland, it is not surprising that foreign investors and their legal
advisors have shifted their attention from the Mainland to Taiwan.
Many are interested in studying the outcome of the recent elections in
Taiwan to determine whether true political opposition will be toler-
ated by the long-dominant KMT. Foreigners are looking to develop-
ments in ROC banking laws for assurances of greater opportunities
for foreign banks to provide a full range of financial services in Tai-
wan. The exciting and volatile Taiwan stock market has captured the
attention of potential foreign investors as well as mesmerized the resi-
dents of Taiwan who have observed their neighbors become million-
aires overnight.

In the midst of these political and economic developments in Tai-
wan, legislators, legal scholars, and lawyers have focused on develop-
ing a rational and systematic legal framework in Taiwan to provide
for rapid and stable development. At the same time, civil libertarians
in Taiwan now call openly for genuine constitutional reforms to
ensure meaningful protection for individual rights.

The editors of the Journal of Chinese Law are proud to present a
two-volume symposium on legal developments concerning Taiwan.
The contents of the two-volume symposium fall into four categories:
the first category relates to legal aspects of Taiwan's international sta-
tus and its foreign policy; the second concerns reforms in the domestic
public law of the ROC, with particular attention accorded to constitu-
tional law and judicial reform; the third focuses on laws relating to
domestic financial and economic activities; and the fourth and final
section concerns legal issues, principles, and regulations arising out of
the growing relationships between Taiwan and the Mainland. Lead-
ing officials of the government of the ROC and influential legal schol-
ars and prominent lawyers from Taiwan, the PRC, Hong Kong, and
the United States have contributed articles and comments to this two-
volume symposium. It serves as a legal guide to be followed when
conducting activities in Taiwan and between Taiwan and the PRC
and is indispensable reading for scholars, businessmen, and lawyers.

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