ABSTRACT
The gap between Taiwan's record of economic and political progress, on the one hand, and its international stature, on the other, is the result of the long struggle for international recognition and legitimization between the Republic of China on Taiwan and the People's Republic of China. Taiwan's pragmatic diplomacy has created an unusual type of security dilemma: its efforts to enhance its security by expanding its range of contacts with foreign countries and international organizations have led to sharp reactions from China which in fact have reduced its security. This chapter presents an overview of Taiwan's foreign policy strategy and the reasons why that strategy changed in the late 1980s. It discusses the key components of pragmatic diplomacy and its achievements, and assesses its future challenges. Domestic political change gradually led to greater flexibility in Taiwan's foreign policy. Southeast Asia has been the site of "vacation diplomacy" by Taiwan's leaders.
