News Archive
2009
2008
After Six Decades, Beijing And Taipei Head For Improved Ties - At All Levels
Sydney Morning Herald
Friday April 25, 2008
THEORETICALLY still at war, China and Taiwan are preparing for the biggest improvement in their relationship since they separated in 1949 after Mao Zedong's Communists won the civil war and forced Chiang Kai-shek's Nationalist government to flee to the island of Formosa.
The rapprochement has been gathering less attention with the inflammatory situation in Tibet, but is very good news for regional stability and is giving Beijing a much-needed diplomatic boost. China and Taiwan are betting that more extensive people-to-people exchanges between them will work in their favour. China has agreed to accept the status quo - Taiwan's de facto independence and self rule - as long as Taiwan's new leaders stop the independence sabre-rattling of their predecessors, the Democratic Progressive Party (DPP). This a generous concession from Beijing, which considers Taiwan an inalienable part of the People's Republic of China that must eventually be reunified, with force if necessary. Analysts and diplomats here and in Australia say the historic meeting between the President, Hu Jintao, and the Taiwanese vice-president-elect, Vincent Siew, this month - the first between China and an elected Taiwanese leader in six decades - was a sign Beijing is now confident reunification will eventually occur on its terms, and that it is willing to be pragmatic rather than belligerent. Beijing was delighted the DPP's Chen Shui-bian lost the presidency in last month's elections. The DPP won power in 2000 on a wave of independence sentiment and increased Taiwanese identity. But as the economy slowed, the public has been more anxious about jobs, economic growth and investment. The president-elect, Ma Ying-jeou, of the Kuomintang (KMT) or Nationalist party, has promised to "lay the foundation for a century of peace and prosperity" if the public will trust him to revitalise the economy by deepening economic and social ties with China while maintaining its political independence. Dr Ma is betting that the tripling of Chinese tourists to Taiwan, now fewer than a million a year, will be positive for greater openness in China. Dr Ma, a Harvard-educated lawyer, is careful to regularly assert his patriotic credentials. Critical of China's human rights record, he says there will be no reunification until China democratises, and has been outspoken on Tibet, suggesting if China's reaction to protests and riots become too harsh, Taiwan might boycott the Beijing Olympics. But he is now spending his efforts on practical measures such as normalising trade relations with China, introducing daily direct flights (now limited to charter flights on specific holidays and cargo flights on a case-by-case basis), liberalising other transport and communications links, introducing direct conversion between the Chinese and Taiwanese currencies, lifting the ban on Chinese investment in Taiwan and the restrictions on Taiwanese business investment in China, while lobbying Taiwanese business to invest more at home. Taiwanese businesses are restricted from investing more than 40 per cent of their firm's net value on the mainland. Dr Ma is likely to loosen that, and is considering opening the island's commercial property market to mainland investors. After decades of Taiwanese businessmen visiting China to see what they could buy, Chinese property and media tycoons toured Taiwan this week looking at investment opportunities, a precursor of greater emeshing of the economies that may change both sides in unforeseen ways. Taiwan's Supreme Court has cleared Dr Ma of corruption charges He was accused of misusing more than $NT11 million ($382,600) in expense accounts when he was Taipei's mayor.
© 2008 Sydney Morning Herald
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