After the end of World War II, R.O.C. took over Taiwan and cut off its 50-years political and economic affiliation with Japan. Immediately, the regimes on both sides of the Taiwan Strait were involved in the civil war and the Cold War between KMT and PRC. In terms of politics, Chiang Kai-shek hoped to form an anti-communist alliance with the Japanese government in order to prevent the expansion of the PRC's influence. In terms of economy, due to the natural environment, it is necessary to import raw materials and export agricultural and industrial products to earn foreign exchange.
Japan is not only a breakwater for the United States to fight against communism in Asia, but also market for Taiwan's new technology and sales market for Taiwan's raw materials and agricultural products. Although both countries are politically in the Free World, Japan hopes to be able to sell industrial products to the PRC, import agricultural products and required industrial raw materials, and always swing between the two sides of the strait, forming a complex political and economic interaction between the PRC, Japan and the R.O.C.
The aforementioned international situation has led Japanese Government to fall into the controversy over China's recognition, and the government's official diplomacy with Japan has encountered many obstacles. In order to win Japan over to the PRC, R.O.C. rely on the second-track diplomacy for assistance, among which Japanese financial and political figures are the targets of the national government. In order to win over Japan to counter the PRC, R.O.C. proposed the concept of economic cooperation.
The meaning of economic cooperation started from the exchange of materials and the participation of the Japanese financial community in the economic construction plan, to investment and technical cooperation, and loan funds. This dissertation examines the changes and their significance. On other hand, discourse the role played by the Committee for Promotion of Sino-Japanese Cooperation and discuss the cooperation process and its subsequent impact from the aspects of trade, technology, capital and investment.
Economic cooperation played the function of the second track of diplomacy, facilitated the interaction between KMT and the Committee for Promotion of Sino-Japanese Cooperation and Japanese political and financial circles, and opened up practical relations other than official diplomacy. The Japanese business community attaches great importance to the Taiwan market and friendship.
Although there is no official relationship after the severance of diplomatic ties, they can still maintain close economic and trade cooperation and exchanges. It is precisely because of the support of the core members of the Committee for Promotion of Sino-Japanese Cooperation that Japan's investment and trade volume with Taiwan has grown year by year, opening up diplomatic relations with economic and trade as the main issue since then.