ABSTRACT
In the context of diplomatic competition between Taiwan and China, a third country may be tempted to switch from Taipei to Beijing in vying for trade preferences and foreign aid to boost its economic growth. This nonetheless may come with a growing trade deficit, a debt trap and an adverse social impact and may not necessarily bring about sustained economic growth. The present study provides comprehensive research on the economic and social impact on the diplomatic switch between Taipei and Beijing and cautions against the danger of switching from Taipei to Beijing and warns of the promise of economic growth that at times has failed. The competition between Taipei and Beijing is situated in the changing geopolitics of US–China strategic competition and more often than not, China’s footprint in a given region has alarmed the US or regional powers.
