Taiwan-China Issue

last SG · 2005-03-29T03:15:04+00:00

Originally posted by sting_760: [quote]Originally posted by sting_760: [b][quote]Originally posted by Blueray: [b] I am living in China right now. . [quote]...

boy in blues SG

http://times.hankooki.com/lpage/opinion/200505/kt2005050419363954300.htm

The Korea Times
Hankooki.com
05-04-2005 19:38

[Times Forum] A Rearmed Japan _ myth or reality?
By Kim Hyong-eok
The writer lives in Namyangju, Kyonggi Province
[email protected]

Tensions between China and Japan appeared to move onto a different stage, as Beijing moved to clamp down on protests against Japan. It was a slightly cooler stage than the red-hot phase the two countries had been in for more than a month. Yet to the dismay of China, the increasingly assertive Tokyo seems reluctant to move. Japanese Prime Minister Junichiro Koizumi expressed deep remorse for his countrys World War II aggression. But his apology came just hours after Japanese lawmakers visited the Yasukuni shrine. China and Japan has entered a new cycle of confrontation.

Japans latest moves indicate that it intends to shift to the right. Once again, the whole affair has renewed an argument over the cliche of A rearmed Japan-a myth or reality? The latest development is reminiscent of Japans 1999 confirmation of its flag and hymn. At that time, Japans leftists saw the confirmation of the Hinomaru and Kimigayo as a step on the way toward militarization. Japanese officials are now contemplating the prospect of changing Japans constitution to annul Article 9, in which Japan renounces the sovereign right to wage war. Former U.S. Secretary of State Colin Powell told Japanese officials last August that Tokyo would need to revise Article 9 if the country were to attain a permanent United Nations Security Council seat.

Japan had clung desperately to the Yoshida doctrine, a deal that relieves it from the responsibility and expense of rearming itself and let it focus on fostering its economy. Yet the disturbing state of affairs in and around Japan is compelling it to change the status quo. Currently, there are three factors in Tokyos decision to switch its course: Chinas looming as the worlds next superpower, the Washington-Pyongyang nuclear standoff, as well as Japans long-moribund economy. Specifically, Japans sick economy is fanning the flames of chauvinism. The rise in jingoism bolstered Japans long-dormant desire to become a normal nation.

The most important element in Japans shift in course is Washingtons tacit approval of Japans high-profile efforts to develop its own military capability. The Bush administration is making stepped-up efforts to address North Koreas threats and Chinas rise. Washington perceives its close ally South Koreas intransigence. Thus Washington is playing the Japan card. Japan is emerging as the U.S.s deputy sheriff in the Pacific.

Yet Washingtons silent consent to Japans military build-up could well boomerang against it. As Japan is preoccupied with developing its own independent military capabilities, it might pay less attention to its alliance with the United States. Within the depths of the Pentagon and the U.S. intelligence community, one hears an argument. It goes like this: There are two rising powers in Asia. The two rising powers are China and Japan. In the long run, a strong Japan might slip out of Uncle Sams grasp. Washingtons hopes for teaming up with Japan to contain the Middle Kingdom may then evaporate.

boy in blues SG

http://www.japantimes.co.jp/cgi-bin/geted.pl5?eo20050511a1.htm

Irking Russia and China,
Japan's new foreign policy

By DAVID WALL
Special to The Japan Times

David Wall is an associate fellow at Chatham House.

The Japan Times: May 11, 2005
(C) All rights reserved

LONDON -- As Prime Minister Junichiro Koizumi has traveled about and made his speeches in recent months, it is possible to trace his perception of a new foreign policy for Japan.
The new focus in Japan's foreign policy seems to have started last Sept. 2 when Koizumi took a boat ride around the Northern Territories, the four islands (also known as the southern Kurils) that the Russians occupied at the end of World War II. Disputing claims of sovereignty over them have prevented the two countries from signing a peace agreement 60 years after the end of the war.

When Koizumi went around the islands, he declared them to be Japanese territory. He held off from actually going ashore, but his declaration was sufficient to seriously damage Japan's relations with Russia.

Koizumi had thought that by offering billions of dollars of Japanese tax-payers' money to help Russia build pipelines to exploit its gas deposits in Siberia, he could ensure that those pipelines would bypass China and deliver the gas to ports north of Vladivostok, convenient for shipping to Japan.

Russia has now announced that it will probably build a pipeline into China first. This has produced some spluttering in Tokyo among politicians who thought that the pipeline was in the bag. They should reread the anti-Russia nationalist speech that Koizumi made as he traveled around the islands.

In December, Japan announced that its commitment to work with the United States on developing antimissile defense technology was aimed at the threat from China. Until then, public discussion had made North Korea the fantasy threat to justify joining America's Theater Missile Defense program -- not the real existence of hundreds of nuclear armed missiles in China capable of reaching all of Japan.

In February the Japanese government further upset the Chinese by agreeing with the U.S. that Taiwan was a "common security issue" in which the U.S.-Japan military alliance had an interest doing "whatever it takes" to defend Taiwan, as U.S. President George W. Bush put it. Although this was known to be the case for some time, it was the first time that the Japanese government had agreed to have it stated so publicly and so baldly.

In the last six months, Koizumi has had several other significant summit meetings. In November he met with President Gloria Macapagal Arroyo of the Philippines and promised her that Japan would press ahead with plans for a bilateral free-trade agreement.

Later that month he met Vietnamese Prime Minister Phai Van Thai in Hanoi and said that even though Japan was now in financial difficulties it would still increase aid to Vietnam and support its application to join the World Trade Organization.

In India, Koizumi followed in the footsteps of Chinese Premier Wen Jiabao, who had signed an agreement with India's Premier Manmohan Singh to establish "strategic partnership for peace and prosperity." Singh said to Wen as he left that "we have started to create new history together."

Koizumi and Singh signed an eight-point plan setting up a "strategic and cooperative partnership." India's media reaction was to describe Koizumi's visit as "Japan's PM in India to strengthen ties amid rift with China."

In Pakistan, where the Chinese and Pakistani premiers had strengthened their economic and military ties through an "all-weather partnership of friendship, cooperation and good neighborly relations" a few days earlier, Koizumi held discussions on a wide range of bilateral issues. He trumped the Chinese offers of friendship with a promise to restart the soft loan aid program that Japan stopped after Pakistan tested its nuclear weapons in 1998.

Upon hearing that, Pakistani President Shaukat Aziz said this meant that Japan would regain its "position as Pakistan's principal development partner."

With Taiwan, Vietnam, India and Pakistan, a pattern emerges. Having gotten up Russia's nose with his trip to the southern Kurils, Koizumi has moved on to the Chinese, who have been, as you might imagine, irritated by these "containment activities."

After Pakistan, Koizumi traveled to Europe and pressed the European Union to "proactively approach Japan and East Asia," as this "should lead to the world's stability and prosperity." He explained by telling the Europeans that Japan does not want the EU to end its embargo on arms sales to China.

He also made it clear that he expects EU support for Japan's bid for a permanent seat on the U.N. Security Council. This would be against the strongly expressed wish of China; China has a veto on such decisions in the U.N., as does Russia.

In Europe, Koizumi has pressed the EU to locate the new $10 billion nuclear fusion research station in Japan rather than in France. ITER is a massive new research project designed to generate electricity from the sort of nuclear fusion that powers the sun. The project will create about 10,000 jobs.

Japan is lobbying hard for ITER to be built in Japan. ITER is being financed by Japan, the U.S., South Korea, the EU, Russia and China. Russia and China have said they are against the project being located in Japan. I wonder why.

boy in blues SG

http://www.chinapost.com.tw/i_latestdetail.asp?id=28111

The China Post
Wednesday, May 11, 2005

Soong rejects independence in Beijing speech (updated PM 11:43)
2005/5/12
The China Post & agencies

Chairman James Soong of the opposition the People First Party (PFP) warned in Beijing yesterday that moves by Taiwan towards independence would lead to a "dead end," and said stable relations with China were the only way forward.
"Our consistent stance is that 'Taiwan independence' is a dead end, Taiwan independence has never been a choice that and Taiwan should go for," Soong told students at Beijing's elite Tsinghua University.

He added that both China and Taiwan should strive to develop a prosperous common market and intensify cooperation instead of fighting each other.

"We don't need war, ... a stable, open and peaceful China is in the interest of the world," he said.

"Many people, like me, have not experienced war but have experienced separation from our loved ones and the pain of separation, or have heard about our parents's sufferings," Soong said.

"We don't want our next generation to have to tell their younger generation about their bloody experience -- that's why we have to work so hard for peace across the Straits."

The 63-year-old Soong urged people in Taiwan and the mainland to try to understand more about each other, saying that Taiwanese people's feelings for their country should not be confused with the "minority" desire to move towards independence.

"Taiwan's sense of identity is an emotion naturally developed through history. 'Taiwan independence' is a motive to separate Taiwan from the mainland," he said.

But Taiwanese people's sense of Taiwan identity has sometimes been "manipulated" by the pro-independence politicians for their own agenda, he added.

He stressed that "the sense of Taiwan identity" is not equal to "Taiwan independence."

But Soong also implicitly rejected Chinese threats to attack the island that Beijing claims as its territory. He said peace is the "common desire" of people on both sides of the Taiwan Strait.

"The PFP will form a strategic partnership with the Kuomintang (KMT), that is, we need to effectively handle together 'Taiwan independence' and anything else that might lead to war or disaster in Taiwan," Soong told students.

China and Taiwan have no official relations and high-level contacts are rare.

Despite a lack of official ties, trade and indirect travel across the Taiwan Strait is booming. Taiwanese companies have invested more than US$100 billion (euro70 billion) in the mainland.

He said the mainland could learn from Taiwan's economic development, which has maintained annual incomes between US$12,000 and US$14,000 (euro9,300-euro11,000) per person.

By contrast, annual incomes in China's booming cities average about US$1,000 (euro700) per person, according to the government.

"We should make China the manufacturing center for the world and also the most prosperous market in the whole world -- not a battlefield," Soong said in comments that were punctuated by frequent applause.

Citing a special report in the Newsweek of the United States, Soong said, "This is the Chinese century...The whole world is now waiting for the huge dragon, China, to take off. ... Are we Chinese people on both sides of the Taiwan Strait ready?"

Soong arrived in Beijing Tuesday saying he was "filled with hopes for peace" and warning war should not be contemplated.

"Several days ago when I was in Nanjing, an old man came up to me ... and said 'Mr. Soong we don't want war' -- this shows that people across the (Taiwan) Straits have the common wish for peace," he said in his speech.

Soong is scheduled to meet President Hu Jintao today for the culmination of what he has termed a nine-day "bridge building" trip.

Tsinghua University is the alma mater of Chinese President Hu and several other leaders. Taiwan has a prestigious university bearing the identical name in Hsinchu.

Soong's comments at the university in Beijing drew a backlash from the Presidential Office and the Cabinet, which clarified that his denouncement of Taiwan independence represented only his personal stance.

President Chen Shui-bian already lashed out at Soong earlier this week for vowing to oppose independence from the mainland.

Claiming that every Taiwan citizen enjoys freedom of speech, a spokesman for the Presidential Office pointed to a 10-point consensus reached between Soong and Chen in late February to buttress its disapproval of Soong's comments at Tsinghua when he said Taiwan independence is a "dead alley" that is not workable for the country's future.

The spokesman stressed that Soong was stating only his personal position, because the sixth point contained in the Chen-Soong consensus issued Feb. 24 states clearly that any change to the status quo between Taiwan and China must be approved by the 23 million people of Taiwan and that no option for future Taiwan-China ties will be ruled out.

Speaking after a weekly Cabinet meeting, Executive Yuan spokesman Cho Jung-tai argued that Soong should not impose his party's political stance on the rest of the Taiwan people, referring to Soong's remarks that the sense of Taiwan identity is not tantamount to Taiwan independence.

Cho said that the government welcomes efforts by Taiwan's political figures to disseminate Taiwan's democratic and pluralistic values and new thinking to the Chinese people, but added that Taiwan's "equal distribution of wealth" notion is a far cry from the "owned by all" concept promoted by the Chinese communists.

Leaders of Chen's Democratic Progressive Party (DPP) and political ally Taiwan Solidarity Union (TSU) also criticized Soong's remarks.

DPP Chairman Su Tseng-chang said Soong can oppose Taiwan independence but should not exclude it from Taiwan people's choices.

TSU Legislator Liao Ben-yen criticized Soong for kowtowing to Beijing and twisting the "Taiwan consciousness."

However, leaders of the opposition "pan-blue" alliance praised Soong's remarks, which resembled the statements made by KMT Chairman Lien in a separate speech at the Peking University.

The successive trips by Lien and Soong to the mainland appear to have worked in their favor, with a poll in a major Taiwan newspaper showing the popularity rating of Chen falling to 39 percent from 44 percent in February.

In contrast, the popularity of Lien surged to 47 percent from 31 percent, according to the China Times survey of 1,002 people on May 9-10.

Lien last month became the first KMT leader to set foot on the mainland since the end of the civil war in 1949.

During his visit, Lien met Hu and jointly pledged to oppose independence for Taiwan and push for greater cross-strait economic and civil cooperation.

The poll showed Soong's approval rating rose to 35 percent from 29 percent.

Beijing leaders are extremely distrustful of Chen, who won elections in 2000 and 2004 on a platform stressing Taiwan's independent identity and denouncing China's missile build-up targeting the island.

boy in blues SG

http://news.xinhuanet.com/english/2005-05/12/content_2947016.htm

Kissinger welcomes current inter-party dialogues across Taiwan Straits

www.chinaview.cn 2005-05-12 02:04:47

¡¡BEIJING, May 11 (Xinhuanet)-- Former US Secretary of State Henry Kissinger said here Wednesday that he welcomes the current inter-party dialogues across the Taiwan Straits.

In a meeting with Chinese Defense Minister Cao Gangchuan, Kissinger called the two Taiwan opposition leaders' visits to the mainland "historic" and said that any peaceful resolution to the Taiwan issue would be welcomed by the US government.

On April 26, Lien Chan, chairman of the Chinese Kuomintang Party, began an eight-day visit to the Chinese mainland at the invitation of the Communist Party of China Central Committee and General Secretary Hu Jintao. Following his visit, James C. Y. Soong, chairman of People First Party (PFP), the second largest opposition party leader in Taiwan, kicked off a nine-day visit to the mainland at Hu's invitation beginning May 5.

Cao, also vice-chairman of the Central Military Commission and a state councilor, said the Taiwan issue remains the biggest challenge to the China-US relations. He said he hoped the US government would adhere to the one-China policy, abide by the three Sino-US joint communiques and support the dialogues and exchanges across the Taiwan Straits.

Cao said the China-US relations are of great importance. He said the two governments have had effective negotiations and cooperation on fighting terrorism as well as on trade and regionalsecurity, which have "further cemented the foundation of the bilateral relations and also contributed to the world peace and stability."

Kissinger suggested that the US and China "build a new framework of cooperation" and make joint efforts to further the bilateral ties.

Kissinger, an 82-year-old foreign policy expert, arrived here on a goodwill visit to China at the invitation of China Institute for International Strategic Studies. Enditem

boy in blues SG

http://www.iht.com/articles/2005/05/11/news/eu.php

Arms ban on Beijing may fall, EU says

By Chris Buckley International Herald Tribune

THURSDAY, MAY 12, 2005

BEIJING The European Union held out the possibility that it will lift its arms embargo against China in coming weeks, as China and the EU announced they would begin negotiating toward a sweeping new agreement to underpin their increasingly close relationship, a visiting EU delegation said on Wednesday in Beijing.

Jean Asselborn, the foreign minister of Luxembourg, which holds the revolving presidency of the EU, said the EU delegation had told Chinese officials that "Europe encouraged China to make progress on human rights" to smooth the way for a lifting of the ban. It has been in place since 1989 and has become a sore point in China-European relations.

Meanwhile, James Soong, a Taiwan opposition leader visiting the mainland, said Taiwan must learn to cooperate with China. (Page 3)

Noting that Luxembourg still has six weeks as the EU's presiding country, he said, "In six weeks a lot of things can happen." He added that "with efforts on both sides," there may be a decision on lifting the ban "in these six weeks or out of these six weeks."

The proposed new treaty that EU and Chinese officials announced Wednesday would replace the current treaty between the EU and China, which was signed in 1985 and "simply doesn't reflect any more the whole breadth or scope of this partnership," said Benita Ferrero-Waldner, the European commissioner for external relations.

The agreement will replace the current treaty between the EU and China, which was signed in 1985 and "simply doesn't reflect anymore the whole breadth or scope of this partnership," Ferrero-Waldner said.

New ties will grow from trade and economics into such areas as technological research, environmental questions and overall political and diplomatic considerations.

The China-EU agreement will be a measure of the two sides' growing international weight, Ferrero-Waldner said.

"We are both emerging global players," she told a press briefing in Beijing, "and therefore our relationship is not only bilateral, but also international, about a relationship that is a global one. We are deeply committed to going on and strengthening and deepening this partnership, which we see as a formidable opportunity."

The announcement of new treaty negotiations comes at a difficult time in European-Chinese relations over the arms embargo.

Relations also have been riled by the EU's decision to begin an investigation that may choke off China's growing exports of garments to Europe.

But the EU's "troika" of foreign policy leaders said they hoped their two-day visit to Beijing to mark the 30th anniversary of China-EU diplomatic relations would help defuse these disputes and advance the two sides' "strategic partnership."

The three EU leaders are Ferrero-Waldner, who coordinates EU foreign policy, Asselborn; and Christopher Hum, ambassador to China from Britain, which holds the next presidency.

Ferrero-Waldner said the EU was committed to solving these disputes through dialogue with China.

S said they would not derail growing ties between China and Europe. "Our objective is to find a solution without recourse to safeguard measures," she said of the looming garment dispute.

She was referring to special World Trade Organization rules that can be used to choke off the flow of exports in extraordinary circumstances.

In Brussels, however, several EU member countries called on the organization to speed up and expand the investigation into Chinese garment exports. France, Spain, Italy, Belgium, Greece and Portugal supported the request, Agence France-Presse reported.

The EU trade commissioner, Peter Mandelson, in April opened an inquiry to examine whether China's surging garment exports were threatening European manufacturers to the point that export restrictions are justified.

China's garment exports to Europe of some types of clothing grew by over 500 percent in the first months of this year compared to the same time last year.

While welcoming the EU delegation, Chinese diplomats said they were unhappy with the EU's postponement of lifting the arms ban and rejected linking of a decision on that issue to improvements in China's human rights, and also objected to any caps on exports.

"Linking the lifting of the arms embargo to human rights is unreasonable and unhelpful," said China's foreign minister, Li Zhaoxing, at a joint press briefing with the EU officials. He said that by "imposing" its human rights standards on other countries, the EU was "itself flouting human rights."

"We oppose linking the question of lifting the ban to human rights," said Liu Jianchao, a Chinese foreign spokesman, at a press briefing on Tuesday. "China will continue to improve its human rights, but that should by no means be relevant to the lifting of the arms of the arms embargo."

Ferrero-Waldner also denied that the EU had made any explicit demands for human rights improvements in China before the ban was lifted. But she said China would "help" its case by demonstrating better treatment of its citizens, especially by ratifying the UN Covenant on Civic and Political Rights.

China signed that covenant in 1998 but has so far failed to ratify it, which would oblige China to bring many of its laws into line with the covenant.

"We need to have to persuade our public opinion, for instance also our European Parliament, that China is making concrete steps to improve human rights," she said. "China also needs to help us to turn the page."

Another member of the EU delegation said it would also seek the release of political prisoners jailed during China's 1989 crackdown, loosening of restrictions on China's press, and also an undertaking from China to overhaul its "labor-re-education camps" that allow for imprisonment without trial.

China has also said it will "resolutely oppose" any caps the EU or United States places on China's garment exports. China's garment exports to Europe would be allowed to grow "at a normal speed," said Ferrero-Waldner.

But the EU would also act to stop what she called "serious market disruption."

But EU officials sought to reach beyond these disputes and show that China and the EU were now important partners on the international stage.

"We should not let the arms embargo overshadow our relationship," said Ferrero-Waldner.

boy in blues SG

http://www.chinadaily.com.cn/english/doc/2005-05/11/content_441253.htm

EU reaffirms one-China policy
(Xinhua)
Updated: 2005-05-11 19:37

A senior European Union official said Wednesday that the Taiwan issue will be given "special attention" during EU senior diplomats' meetings with Chinese officials and the EU will stick to the one-China policy.

European Commissioner on external relations Benita Ferrero- Waldner said at a news briefing that the European Union "always supported the one-China policy" and the Taiwan issue will be mentioned "particularly in the light of current visit by Taiwan opposition leader James CY Soong."

"We welcome any move to promote dialogue," she said.

Ferrero-Waldner said that Soong's tour and last week's visit to the mainland by a delegation of Kuomintang (KMT), or the Chinese nationalist party, which is headed by party Chairman Lien Chan, are "good starting points."

"We hope that recent contact on this level can lead to dialogue with all political parties in Taiwan," she told Chinese and overseas journalists before her meeting with Chinese Premier Wen Jiabao and talks with Foreign Minister Li Zhaoxing.

Ferrero-Waldner, together with Luxembourg's Foreign Minister Jean Asselborn and British Foreign Secretary's representative, British Ambassador to China Christopher Hum, started the EU Troika foreign minister's first official visit to China Wednesday. The visit marks the 30th anniversary of the establishment of EU-China diplomatic ties.

During the meetings, the EU officials will also discuss with China surging textile trade, the nuclear issue on the Korean Peninsula, EU arms embargo on China, the Myanmar situation and the reform of the United Nations.

Hailing EU-China political and trade relations, Ferrero-Waldner said a new framework is needed to further bilateral trade and economic ties.

"It's time to reflect the vibrancy of our relations with an ambitious new agreement that will help us move to a fully-fledged strategic partnership," she said.

China and the European Community established diplomatic ties in 1975. The two sides agreed to forge "a comprehensive strategic partnership" in 2003.

boy in blues SG

http://www.jamestown.org/publications_details.php?volume_id=408&issue_id=3328&article_id=2369729

ANALYZING LIEN'S VISIT: WHAT NEXT FOR CROSS-STRAIT RELATIONS?

The Jamestown Foundation
CHINA BRIEF
Volume 5 Issue 11 ( May 10 , 2005 )
By Willy Lam

Beijing has regained some initiative on the Taiwan issue by having two major Taiwan opposition leaders pay homage to the Middle Kingdom. Yet the Chinese Communist Party (CCP) leadership under President Hu Jintao needs to offer Taiwan's people a lot more than pandas to persuade them that the recent "smile offensive" is little more than old-style united front tactics. And while Taiwan President Chen Shui-bian seems to be on the defensive, the wily pro-separatist politician still has cards left to battle the apparent united front put up by the CCP and the Kuomintang (KMT or Nationalist Party).

It is without doubt that the historic handshake between CCP General Secretary Hu and KMT Chairman Lien Chan late last month has at least temporarily swept aside some negative repercussions of the Anti-Secession Law (ASL) that was hastily passed by the National People's Congress last March. The ASL, which authorizes the People's Liberation Army (PLA) to use force against Taiwan in case of the latter's formal secession from the mainland, has alienated even members of the KMT and the other major opposition party, the People's First Party (PFP). The statute is also a main reason why the European Union has held up the lifting of the 16-year-old embargo on the sales of arms to China.

The Lien tour plus PFP Chairman James Soong's forthcoming visit to Beijing has provided the Hu leadership with a golden opportunity to focus on the more benign aspects of Beijing's reunification game plan. Even as Hu, also Chairman of the policy-setting Central Military Commission, has significantly boosted the PLA budget, the new supremo has repeated previous leaders' pledges that Beijing "pins its hope of reunification on all sectors of the Taiwan people." At a closed-door meeting on Taiwan issues last autumn, Hu also noted that "we must show Taiwan's people the concrete benefits they can get through reunification." Apart from the pandas, Hu has offered Lien, the KMT, and especially Taiwan commercial interests goodies galore. They include reduction of tariffs for the produce of Taiwan's farmers, permission for more mainlanders to go to Taiwan as tourists, and the possible conclusion of some form of a Closer Economic Partnership Agreement that had been established between the mainland and Hong Kong.

And it is likely that Beijing will give away more dispensations, particularly business benefits, during the visit of Soong, who used to be a stalwart KMT politician until he broke away to form his own party in 2000. After all, an estimated 1 million Taiwan bosses and technicians live and work on the mainland. And Taiwan's corporate community has put tremendous pressure on President Chen to sue for peace with Beijing or at least to refrain from provocative gestures such as threatening to revise the Taiwan Constitution to reflect the island's "statehood status." Earlier this year, Chen was shocked when Hsu Wen-long, the head of the massive Chi-Mei conglomerate and a keen supporter of the DPP suddenly shifted gears by declaring his support for the one-China policy.

So far, Beijing's time-tested united front tactics seem to have scored initial success. Most opinion polls in Taiwan show that about 55 percent of the population thought Lien had done well on the mainland and that his trip had resulted in the reduction of cross-Strait tension. However, it is important to note that Taiwan is not Hong Kong, whose business community is also extra eager to seek the blessings of CCP authorities. So far, the Hu leadership has yet to demonstrate to Taiwan's people that Beijing is not merely going after PR effects.

Take for example, the crucial issue of the conclusion of a short- to medium-term peace treaty between the mainland and Taiwan. The joint statement issued by Hu and Chan noted that both sides would study the possibility of such a non-belligerence accord. It is obvious, however, that Beijing has been but play-acting on this issue. A peace pact would violate the CCP leadership's long-standing stance that it will never forego the right to use force against Taiwan. Moreover, any such agreement would go against the spirit of the just-enacted ASL. And in a press conference after Lien's visit, Vice-Chief of Beijing's Taiwan Affairs Office, Wang Zaixi noted that "under the one-China principle, anything can be discussed, including the issue of missiles." Wang was apparently referring to earlier speculation that Beijing might agree to move away some of the approximately 600 missiles in Fujian and Jiangxi Provinces that are targeting Taiwan. It is common military knowledge, however, that the PLA's missiles are highly mobile; and that there are missiles aplenty in other provinces capable of hitting the "renegade province."

CONTINUED IN NEXT POST

boy in blues SG

It is true, of course, that Beijing's high-decibel united front and propaganda offensive has had some effect in marginalizing Chen, whose popularity rating recently slipped to 34 percent according to the United Daily News, a Taiwan paper. However, the peculiar circumstances under which the historic Hu-Lien tete-a-tete took place have left Chen with ample ammunition to fire back at both the CCP and the KMT. The official Chinese media has made much of the fact that the CCP and KMT are about to embark on their third round of cooperation (the first two being short-lived and acrimonious alliances mainly to fight the invading Japanese Imperial Army). It is assumed then, that the target of the third CCP-KMT alliance is the DPP, and there are unconfirmed rumors that the Hu leadership has vowed to help the successor of 68-year-old Lien who is due to step down soon recapture the Presidential Palace in the 2008 polls. Pundits in Taipei said it would be a no-brainer for Chen to zero in on the fact that Lien who had lost twice in presidential elections was but "selling out Taiwan" for the partisan interests of the KMT.

It is noteworthy that in the joint Hu-Lien statement, both sides vowed to carry on the tradition of "party-to-party talks" to solve cross-Strait problems. Perhaps overexcited by the VIP treatment he had received in Beijing, Lien did not mention the fact that the fate of Taiwan must be decided by all of its 23 million residents. And it would be difficult for Lien or his successors to argue that Taiwan's opposition party is a competent authority to discuss the island's fate with the CCP.

While the visits of Lien and Soong have contributed to the relaxation of cross-Straits tension at least in the short run, the long-term development of mainland-Taiwan ties hinges on interaction among the three major parties: the CCP, the DPP's Chen and the United States. President Hu has a vested interest in maintaining a relatively cordial cross-Straits atmosphere at least until 2008, when presidential elections are due in Taiwan and Beijing will be holding the Summer Olympics. The CCP stands to garner a bonanza of good will across all of Taiwan's sectors if it were willing to lower the threshold regarding requirements for DPP cadres visiting the mainland. The TAO reiterated last week that DPP members were welcome on the mainland provided that they would recognize the "1992 consensus" (usually explained as "one China, howsoever interpreted") and give up the pro-independence clause in the DPP's charter.

However, much as Chen might want formal dialogue with Beijing a China trip would substantially lift his political standing in Taiwan it might be politically suicidal for him to accede to the CCP's preconditions. The DPP leader has never accepted the "one China principle." And he has already been subjected to intense fire from more doctrinaire pro-independence elements on the island for allegedly "caving in" to the mainland's united front tactics by, for example, giving his blessings to Lien's China tour. Chen, however, is anxiously grooming a successor for the 2008 polls. And to win that crucial election, the DPP has to reposition itself closer to the mainstream of Taiwan public opinion, which wants peace and more communication with Beijing authorities.

Given Washington's immense clout in the region, the George W. Bush administration may have what it takes to inject the kind of momentum that could make a Hu-Chen tete-a-tete possible. After the Hu-Lien meeting, the State Department called upon Beijing to consider talking to Taiwan's ruling party also. And Washington had reportedly urged Chen not to lay obstacles in the way of the China visits of Lien and Soong. While it would be against U.S. interests for Chinese reunification to take place too soon particularly one that is attained at the expense of the wishes and autonomy of Taiwan's people it is to Washington's advantage that peace be maintained in the Strait. And direct communication between Hu and Chen and their successors would at least ensure a state of non-belligerence throughout "reunification talks" that are expected to last a decade or so.

However, the big challenge is that neither Beijing nor Taipei trusts Washington enough for it to play the role of honest broker. Consumed with the obsession that Bush is waging an anti-China containment policy, the Hu leadership is extra wary of Taiwan-related suggestions coming from the U.S. And Chen is paranoid about the possibility remote as it seems of Washington selling out Taiwan because of the "pro-China" inclinations of the growing American corporate community that is doing business with the PRC.

Willy Wo-Lap Lam is a Senior Fellow at The Jamestown Foundation as well as a Hong Kong-based journalist and analyst.

suntze SG

boy in blue, thks for these informative post; I find the article on Kissinger's visit particularly interesting.

There is underlying optimism in Kissingers statement about the US government welcoming dialogue between CCP and Taiwans opposition parties. It firstly highlights the fact that dialogue is a positive move towards reducing cross-strait tensions and secondly underlines the preference of the US (provided his views reflect that of the administration) for a peaceful resolution.

So far, Hu-Wen have made their moves in a rational and strategic manner, more so than their immediate predecessors. Theyre probably busy implementing a strategy of winning without fighting. The latest move is the invitation of the KMT and the PFP thereby cutting the ground from under the DPP.

They're probably experts at Go!!

boy in blues SG

http://www.swissinfo.org/sen/swissinfo.html?siteSect=143&sid=5779966&cKey=1115951711000

Friday 13.05.2005, CET 07:30
Swissinfo
May 13, 2005 4:35 AM

China dangles sweeteners as Taiwan's Soong leaves

BEIJING (Reuters) - China's top policy-maker on Taiwan offered to ease restrictions on contacts between the two sides on Friday, a day after Taiwan President Chen Shui-bian rejected a new mainland formula as a basis renew talks.

The offers to ease employment for Taiwan residents on the mainland, simplify entry and exit procedures and reduce university tuition fees for Taiwan students came as James Soong, head of the island's second-biggest opposition party, left after a nine-day visit.

They also increase pressure on Chen, who supports independence for Taiwan, the self-governing island China claims as its own and has vowed to reunite with the mainland ever since their split in at the end of the Chinese civil war in 1949.

"This is another gesture of affinity of easing tensions across the Taiwan Strait," the official Xinhua news agency reported, quoting Chen Yunlin, head of China's Taiwan Affairs Office.

During a historic trip last month by Lien Chan, head of the Nationalist Party, or Kuomintang, which once ruled all China, China offered to give Taiwan a pair of giant pandas and cut import tariffs on Taiwan-grown fruit.

On Thursday, after a meeting between Soong and Chinese President Hu Jintao, the two proposed a "two sides, one China" formula as a basis for Beijing and Taipei to resume talks.

But Chen rejected the "one China" principle as a precondition for talks, saying it would undermine Taiwan's sovereignty.

The "two sides, one China" wording would redefine a 1992 agreement between China and Taiwan that the island and mainland form "one China".

That consensus formed the basis for talks, but they broke down in 1999 when then President Lee Teng-hui tried to reassert the island's sovereignty by redefining ties as "special state to state".

Reuters

boy in blues SG

stay tuned

'Go' has been intellectual property of China since 6th century B.C. Mr. Green

boy in blues SG

http://www.forbes.com/technology/personaltech/feeds/ap/2005/05/12/ap2021137.html

Forbes
Associated Press
Taiwan Shares End Higher on U.S. Rally
05.12.2005, 04:19 AM

Diana Wu, an analyst at Capital Securities, said she expects the local bourse to consolidate between 5,800 and 6,050 Friday and next week as investors stay on the sidelines ahead of Saturday's elections and next week's speech by Taiwan President Chen Shui-bian.

On Saturday, Taiwanese voters will elect delegates to an assembly that will in turn vote on proposed reforms of the electoral system. Beijing is wary this could ultimately lead to an independence referendum.

China and Taiwan split at the end of a civil war in 1949, but Beijing still claims sovereignty over the island. China sees Chen as a supporter of formal independence, a move which Beijing says could lead to military action.

And on May 20, the anniversary of Chen's inauguration, investors will pay close attention to Chen's remarks about China-Taiwan relations, especially at a possible response to Beijing's proposal to allow mainland tourists to visit the island.

Hopes that Taiwan will reach an agreement with China on allowing Chinese tourists to visit Taiwan sent the tourism subindex 5.2 percent higher, analysts said.

Leofoo Development soared 4.8 percent to NT$17.4 and Ambassador Hotel advanced 4.1 percent higher at NT$26.5.

Taiwan shares ended slightly higher Thursday, led by chipmakers and flat-panel makers, following modest gains in the U.S. market, analysts said.

The Weighted Price Index of the Taiwan Stock Exchange finished 17.47 points, or 0.3 percent, higher at 5,934.60 in dealings valued at 56.1 billion New Taiwan dollars (US$1.79 billion; euro1.4 billion).

Decliners outnumbered advancers 472 to 349, while 197 issues ended the day unchanged.

"The index ended higher after spending much of the session in negative territory, indicating investors aren't convinced of a better tech outlook," said Margaret Pan, a senior vice president at Capital Securities.

The Dow Jones industrial average rose 0.2 percent overnight, while the tech-laden Nasdaq Composite Index gained 0.5 percent.

Shares in Taiwan Semiconductor Manufacturing Co., the world's largest contract chipmaker, rose 1.7 percent to NT$54.5, recovering some of their 2 percent decline Wednesday.

The stock fell in the previous session after the chipmaker approved an issue of 210 million American Depository Receipts backed by common shares held by Philips Electronics and Taiwan's Cabinet Development Fund.

TSMC's smaller rival United Microelectronics Corp. rose 1.6 percent to NT$19.45.

Makers of liquid-crystal-display panels rose after a report in Taiwan's business daily the Commercial Times said AU Optronics successfully test-produced 94-centimeter (37-inch) flat panels.

The report also said AU Optronics, the world's third-largest LCD maker, will more than double its 32-inch flat-panel shipments this month from April.

AU Optronics finished 1.3 percent higher at NT$52.8 and Chi Mei Optoelectronics ended up 0.6 percent at NT$50.8.

However, memory chipmakers fell after Korea's Samsung Electronics said it expects demand and supply for DRAM chips to be in balance in the second half of the year in a slightly more conservative view than that of many analysts.

Powerchip, Taiwan's largest DRAM maker, ended down 2 percent at NT$24.5 after sliding as much as 4 percent Thursday, while Nanya Technology dropped 1.3 percent to NT$23 after falling as much as 4.3 percent during the session.

boy in blues SG

http://www.chinapost.com.tw/business/detail.asp?GRP=E&id=62309

FTA best for both sides of Taiwan Strait

2005/5/12
TAIPEI, CNA
Business

Economic Minister Ho Mei-yueh said yesterday that a free trade agreement (FTA) between Taiwan and China would be best for Taiwan. She also said that if China is sincere, it should discuss the issue with Taiwan.

Ho made the remarks when she was invited by the Economics and Energy Committee in the Legislative Yuan to report on the cross-Taiwan Strait situation and the prospects for a cross-strait common market after a meeting between main opposition Kuomintang Chairman Lien Chan and Chinese President Hu Jintao in Beijing in late April in which both advocated cross-strait economic cooperation.

KMT Legislator Lai Shyh-bao noted that the government wants both sides of the Taiwan Strait to have trade talks under the framework of the World Trade Organization (WTO), but he questioned if that will be beneficial to Taiwan.

Lai pointed out that Taiwan joined the WTO in 2002 under the name of Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, and not in the name of a country.

The FTA is an agreement between countries, Lai went on, adding that President Chen Shui-bian and Premier Frank Hsieh have said that both sides must sign the FTA, which Lai claimed is a policy "to cheat the people, " or just "pie in the sky" because of the international reality.

Ho said that Taiwan indeed joined the WTO as an economic entity, but according to the WTO rules, such economic entities can also sign FTAs. If both sides of the Taiwan Strait want to talk about tariff concessions,any treaties or agreements must be sent to the Legislative Yuan for approval according to domestic law.

Lo Hsih-hsiung, another KMT legislator, noted that the government advocates exchanges under the WTO framework, but said Taiwan imposes a number of restrictions on cross-strait trade, and he expressed doubt that Taiwan would agree to reciprocal tariff concessions for China.

Lo said that Taiwan does not have to insist on the WTO framework, adding that if the FTA is not feasible, there might be another alternative available to the government.

However, Ho said that the government at present does not consider that there are any feasible alternatives to talks under the WTO framework in line with Taiwan's law.

boy in blues SG

http://www.atimes.com/atimes/China/GE11Ad01.html

Federation could be win-win for China, Taiwan
By George Zhibin Gu
May 11, 2005

The realities between Taiwan and mainland China are "economically hot, politically cold". Their ever-increasing economic ties demand far better political relations. One highly feasible resolution is a "federation". Would it work? The answer: economically, the time is right; politically, it is only few steps away.

A federal system would mean more autonomy for Taiwan than Hong Kong and Macau enjoy; for Beijing it would mean the revolutionary concept of a unified China with multiple power centers. Under a federal system, the island would keep its own government, military, judicial and other systems. Its political leadership would not bow to Beijing. In short, it would be a political partnership between equals. Both political entities would be subject only to a "federation" law. And anything is open for discussion under the "one China" principle.

Taiwan's love affair with the mainland
Economically, Taiwan and mainland China are well connected. The mainland is Taiwan's biggest trading partner as well as its No 1 export market. In 2004, total cross-strait trade reached US$61.6 billion, a jump of 33.1% over 2003; of which Taiwan's exports accounted for $45 billion, by Taiwan's own accounting.

Besides ever-increasing trade, investment is another major activity. In 2004 alone, Taiwan Inc invested $6.94 billion in the mainland. Officially, Taiwan's total investment stood at about $40 billion by 2004. But some people estimate it as high as over $100 billion. This discrepancy in numbers comes from numerous government restrictions on Taiwan investment in the mainland; as a result, many members of Taiwan Inc may go to the mainland from a third location. One popular way is via tax-shelter islands.

Behind the ever-increasing trade, there is an ever-increasing tide of investment from Taiwan Inc. The mainland is its biggest destination already and it now has over 60,000 Taiwan enterprises. It also has more than 1 million Taiwan residents as well. Shanghai alone has more than 300,000 Taiwan residents. Living and working opportunities in the mainland will only increase for the Taiwan residents, as there are more opportunities for them over there.

This cross-strait trade has made a huge difference in the island's economic health. Lately, nearly all the island's growth has been attributed to mainland trade. In particular, cross-strait trade has created 1 million jobs in Taiwan. There are vast additional benefits as well.

In reality, there is huge room for improvement, as there are numerous restrictions in Taiwan opposing bilateral trade and investment. For example, its largest energy company, China Power, is allowed only to buy up to one-third of the coal it needs from the mainland. As a result, China Power must spend more money to buy the additional coal from places far away. If such bans were lifted, cross-strait trade could easily double. In reality, better political ties are demanded for both sides to enjoy all the benefits from their huge economic cooperation.

A big step towards a solution
Like Hong Kong and Macau, Taiwan is moving fast in integrating its economy with that of the mainland. This process has been accelerating year after year. Taiwan has gained enormously and its economic benefits will directly promote better political relations.

The current cross-strait difficulties are caused by the unfinished business of the long-term civil war between the Communist Party and the Kuomintang (KMT), the nationalist party that lost the Chinese civil war and fled to Taiwan. For now, the KMT has become more involved, officially visiting the mainland.

Despite all the political uneasiness, the general direction can hardly be reversed. Indeed, in the past six decades, there have been dramatic improvements, from past exchanges in bombshells to vast human and economic exchanges, as is the case today.

Simply put, more rational measures will only offer the island's political leadership more advantages. Despite all the frictions between Beijing and Taipei, the roads for peaceful resolutions are wide open. The recent trip to the mainland by the Kuomintang chairman Lien Chan is a very healthy start. It also opens a wider door for more direct exchanges between Beijing and Taipei.

For both parties, being Chinese is their greatest strength and nothing is more significant. For now, there are also positive signs from Taipei. In particular, Taipei is considering widening access for mainland Chinese tourists. Also, more political groups from Taiwan are on their way to visit the mainland. As such, widening peaceful contacts and dialogues are emerging. All this points to bright prospects for both sides.

In the long run, the most crucial factor determining the ultimate outcome of the unity issue is sustained progress in the mainland, both economically and politically. A progressive and prosperous mainland China will change all the dynamics in the cross-strait relations. Happily, by now, mainland China is entering a new era of deepening institutional and political reforms, besides possibly new rounds of economic advancement. This will fundamentally enhance a peaceful resolution of the unity issue. At the same time, the choices to bring about unity are also vast. They include the choice of a new federation for China, for example. As a matter of fact, it is the best choice on the table.

Why federation?
The central concern is that the island's government is afraid to become a "local government" under a central government from Beijing. Instead, it wishes to maintain itself as an independent political center, having all the autonomy possible. It wishes to keep its independent government body, military, currency and judicial systems, among other things. In short, it does not intend to be subject to a higher central power.

For Beijing, the concern is more about political unity. It has become very pragmatic in its thinking and dealings. In its mind, anything can be and should be discussed provided that there is one China. This position of Beijing means that it has walked out on the traditional mentality that a unified China must be governed under one centralized government. This change in mentality and policy lays down the very political foundation for a federation.

CONTINUED IN NEXT POST

boy in blues SG

Already, Hong Kong's and Macau's returns to China are exemplary. The situation is different from the United States federal system, for example. In the US, the governor of New York State is elected by the state's residents and his actions are independent of the central government in Washington, DC. However, federal law overrides state and local statutes. Financially, the central government levies a federal tax on New York residents. But in both Hong Kong and Macau, Beijing does not have tax claims over those residents living in those highly self-governed cities, though politically, Beijing remains as the central authority.

However, the good will of Beijing goes far beyond the degree of autonomy for Hong Kong and Macau - as far as the special case of Taiwan is concerned. Indeed, Beijing's position is that Taiwan can gain much more autonomy in the future. For a long time, Beijing has been proposing that the island maintain its government and key institutions. Its political leadership would not be subject to Beijing. Both political entities would be subject only to a "federation" law. Anything could be discussed under the "one China" principle. So, China has already moved toward a federation, though Beijing has not used the word "federation."

This "federal" approach is revolutionary for China, as it has never happened before. It means that a unified China can have more than one political center. Indeed, Taipei will become another political center under a federation. Gaining multiple political centers would certainly be new to all Chinese. But this is demanded by the current realities and it is the best possible resolution that accommodates the needs of the various political entities.

Would this federal alterative do Taiwan any good? It certainly would. Above all, it gets rid of all unwanted political tensions and offers all the opportunities for Taiwan. In short, the island's political establishment would gain all the advantages, while keeping all its existing positive institutions and ways in a federation. Otherwise, continued cross-strait tensions will cause unnecessary damages, even catastrophic damages, if they escalate.

Hostility toward mainland China with 1.3 billion Chinese would be most irrational as well as unacceptable to all Chinese around globe. But a change in mentality as well as approach would open the doors to a better world.

Above all, they are all Chinese, separated only by an unfinished business of a painful civil war. Now, the Chinese people have all the opportunities to move forward creatively and productively. It means a peaceful unification for the Chinese people living on both sides of the Taiwan Strait. It roots out all the elements for political tensions and the unwanted consequences. Both sides will benefit directly from peaceful unity. This great prospect of a federal alternative has emerged at this time.

The rational resolution of the cross-strait tension will enhance global peace and progress, not just for China. For many decades, and even centuries, the Taiwan issue has been a key de-stabilizing factor for East Asia and beyond. A peaceful and progressive outcome would bring benefits to the entire world. So, therefore, the outside world has every reason to be supportive and constructive in promoting the federation concept.

(Copyright 2005 George Zhibin Gu.)

George Zhibin Gu, author and business consultant based in China, is the author of a forthcoming book, China's Global Reach: Markets, Multinationals and Globalization (Haworth Press, Fall 2005). (Some thoughts on a Chinese federation are also contained in his previous book, China Beyond Deng: Reform in the PRC, McFarland, 1991) He can be reached at [email protected]

boy in blues SG

http://www.businessweek.com/magazine/content/05_20/b3933021.htm?chan=gb

Stan Shih on Taiwan and China
The PC-pioneer-turned-VC talks about the two countries' futures and about how Taiwan can gain by becoming an "integrator"
MAY 16, 2005 Editions: N. America | Europe | Asia | Edition Preference

For nearly three decades, Stan Shih was the driving force behind Acer Inc., one of the world's top PC brands and the Taiwanese company that has had the most success moving beyond the contract-manufacturing business and establishing its own name worldwide. A few months ago, Shih retired from Acer and is now running idSoft Capital, a Taipei-based venture-capital firm. He also created headlines recently by revealing that he had a resigned as an adviser to Taiwanese President Chen Shui-bian.

Shih spoke to BusinessWeek's Bruce Einhorn and Matt Kovac in April at his Taipei office about the controversy surrounding that resignation and the role that he sees Taiwan playing as China continues to grow. Following are edited excerpts:

Q: Why did you step down as an adviser to President Chen?
A: I am a citizen, and I always cooperate with the government, [so] in 2000 I agreed to become one of the national advisers to the President [if] Mr. Chen became the President. It's natural. I'm a citizen of the country, and I'm honored to be an adviser to the President.

Q: Then why did you quit?
A: [Being an adviser] created a lot of concern. I had a lot of trouble, because I am neutral. It mislead [people] into [believing] I support the DPP. [President Chen started a] new term last year. Many KMT friends and advisers were not renewed. It looks like I'm supporting the DPP. Looks, looks -- in reality, it's not. I just decided last year, because I was going to retire [from Acer], that I would ask not to renew.

Q: The news caused a bit of a stir, coming so soon after the open letter from Chen adviser Hsu Wen-long that criticized Chen's government. Do you think there's a trend among business leaders to distance themselves from President Chen and his party because of pressure from Beijing?
A: I think [Taiwanese business leaders] are all neutral. As businessmen, they always want to be neutral. Maybe from my personal point of view, I don't think the PRC [would] like us to go against Taiwan. They are not in any position to request that. There is no way. If the Taiwan government asks us to go against China, economic development, it's very difficult. Our position is not against their development, the PRC. It's very difficult, very sensitive. As businessmen, we work with anyone.

Q: Where do you see China's economy moving?
A: China right now is the world factory already. But in many sectors of the industry I think there are two [problems. The first is that China] createa oversupply all over the world. Another is China now consumes a lot of natural resources in an ineffective way. If they don't control these developments, in the long run, China just can't keep continuing to progress this way. They will reach a limit.

Q: What's the answer?
A: Now is a knowledge-based economy. There's a lot of innovation, a lot of knowledge. But to me, my current thinking is really how to integrate the current available resources in an effective way. It's most important right now. We don't need to do something new. We only try to integrate the current resources available in Greater China with the global economic requirements.

Q: Is there a role for Taiwan in that process?
A: Taiwan can play this integration role. We know how to leverage the China resources, we know what the global requirements [are], we have the reputation as integrators, taking the risks. Taiwan can become a hub to integrate.

The beauty is that Taiwan is so small. Nobody is concerned about Taiwan, so Taiwan can become an integrator. Everyone is concerned about the U.S. dominating everything. Taiwan cannot dominate. Taiwan is small, with a small population. [For] China and the Japanese, if they don't conquer the world, they aren't happy. If we can do a little bit more, we are happy.

Q: What do you think is the Taiwan advantage?
A: In many cases, all the new technology developments or business plans from Day One are global concerns, [with a] global view. In the past, many American companies focused on the U.S. only. [But for Taiwanese] from Day One, you have consider that your business model is a global concern. Taiwanese companies because of their small country, an island, their culture is global from Day One.

Q: Lots of people are worrying about the Taiwanese economy hollowing out as manufacturing jobs disappear.
A: Hollowing out -- [the process] starts from Japan, it's their terminology. I try to convince the Taiwan general public that the hollowing out of low-value-added activity is not a critical concern. Hollowing out the future higher-value-added activity is the concern, and those areas are more intangible. Hollowing out of tangible things is not critical. Hollowing out of intangible things is really critical. But this kind of message is not easy to communicate and appreciated by the general public.

Q: What's the answer?
A: The government [should look at] how to reorient human resources [among those who have lost their manufacturing jobs]. If you don't do that, you always create unemployment. If we develop a service industry more aggressively, this more effectively utilizes Taiwan resources. We should not be concerned about hollowing of manufacturing jobs to China, because you just cannot stop it, and even if you could, it's not in the interests of Taiwan at all.

Q: What sort of edge does Taiwan have in services?
A: We can do many things. One-third of the economy is manufacturing, but service is two-thirds. The manufacturing is relatively more global. Service is related to the culture. Service is the future of China, quality of life. In the Chinese community, Taiwan relatively is more complete. Hong Kong is a city. Singapore is a city. They are not really a typical Chinese community. Taiwan is really the future of many of the China communities.

For a lot of service industries [in China], Taiwan practice is more suitable than any other model, American model or Japanese model, to practice in China. The future of Taiwan is technology-based service industry. It's much higher-value-added and more leverages integration capability, and helps Taiwan become more of a leader.

Q: How much of a threat do Chinese companies pose?
A: Chinese companies, if they do this, they need a lot of considerations. No. 1, of course, is that they have to earn the trust from others. Trust sometimes takes time to build.

No. 2, they have to integrate global resources. If you just try to do it by yourself, it's impossible. The Taiwanese, when they move to Dongguan, to Yangtze River, to Suzhou, it's in clusters. The Chinese players, they don't have that.

No. 3 is that China players today [are focused] really [on the] local market. It's not a manufacturing culture for global requirements. They can be good for subcontracting. But their manufacturing is not for global. Their orientation is more for local market requirements.

crazyazn SG

May 14, 10:17 AM EDT

Taiwan Ruling Party Wins Special Election

By PETER ENAV
Associated Press Writer

TAIPEI, Taiwan (AP) -- Taiwan's ruling party won elections Saturday for a special assembly charged with amending the island's constitution, giving a big boost to President Chen Shui-bian's policy of resisting unification with rival China.

With 99 percent of the ballots counted, the Central Election Commission said the Democratic Progressive Party had won 42.5 percent of the vote, against 38.9 percent for the opposition Nationalist Party.

The vote - for the ad hoc National Assembly - had developed into a test of strength for Chen's policies, following the visits to China of Nationalist chief Lien Chan, and James Soong, head of the People First Party.

That party garnered only 6.1 percent of the vote, coming in fourth behind the Taiwan Solidarity Union, a pro-independence party, whose spiritual godfather is former President Lee Teng-hui. The TSU won 7 percent of the vote.

http://hosted.ap.org/dynamic/stories/T/TAIWAN_ELECTION_RESULTS?SITE=ASIAONE&SECTION=ASIA&TEMPLATE=DEFAULT

boy in blues SG

http://www.signonsandiego.com/news/world/20050511-1438-china-taiwan.html

Taiwan politician in Beijing says two sides should pursue common prosperity, ensure peace

By Alexa Olesen
ASSOCIATED PRESS
2:38 p.m. May 11, 2005

BEIJING Alluding to a speech by President John F. Kennedy, a Taiwanese opposition leader said Wednesday that China and Taiwan should put aside political differences and reap the economic benefits of what he called the coming Chinese century.

The remarks by James Soong, chairman of Taiwan's People First Party, come ahead of a scheduled meeting Thursday with Chinese President Hu Jintao.

Soong is the second Taiwanese opposition leader to hold talks with Hu within a month as part of Chinese efforts to contain activists who want Taiwan, which split with China in 1949 amid civil war, to make its independence permanent.

Beijing is trying to forge ties with groups such as Soong's People First Party that favor uniting with the mainland.

"The children of China do not forget their roots, brothers across the Taiwan Strait have a common ancestor and pursuing peace is a mainstream wish," said Soong during a meeting with communist leaders at the Great Hall of the People in Beijing.

At a banquet with Chinese Vice President Zeng Qinghong, Soong called his trip one of "great significance."

"Our visit has broken a great political taboo from the past 50 years and I feel excited to come to the mainland to have an official, face-to-face exchange between the two sides," he said.

He reaffirmed his party's opposition to Taiwan independence something he has done at almost every stop of his nine-day trip.

"This is our unshakable stance," Soong said.

At a speech earlier Wednesday at Beijing's elite Tsinghua University, Soong said Taiwan and China should become "the manufacturing center for the world and also the most prosperous market in the whole world."

"This is the Chinese century," Soong said. "The whole world is now waiting for the huge dragon, China, to take off ... Are we Chinese people on both sides of the Taiwan Strait ready?"

China and Taiwan have no official relations and high-level contacts are rare.

Despite a lack of official ties, trade and indirect travel across the Taiwan Strait is booming. Taiwanese companies have invested more than $100 billion in the mainland.

Soong said Taiwan should take concrete actions to improve cross-Straits relations and reduce misunderstandings but he didn't give specifics.

Soong alluded to President John F. Kennedy's famous comment on patriotism to make his point on improving relations. "Ask not what I said in Beijing. ... Ask only what we're doing back in Taiwan."

Kennedy said in his 1961 inaugural address: "Ask not what your country can do for you, ask what you can do for your country."

Soong asked mainland Chinese to sympathize with the affection that ethnic Chinese feel for their adopted Taiwanese homeland something he called "Taiwan consciousness." He asked mainlanders not confuse that feeling with the actions of a minority of Taiwanese agitating for formal independence.

"Those people have political motivation and (their concerns) cannot be confused with the warm feelings of the ordinary people of Taiwan," Soong said.

On Taiwan, President Chen Shui-bian first criticized the trips by his rivals, then expressed cautious support for them, and finally claimed that he alone is capable of breaking the deadlock with China over Taiwan's political status.

Chen's confused response to visits to China by two political rivals has spurred attacks from friends and enemies, raising questions about his continued political effectiveness.

Lien Chan, head of Taiwan's main opposition group, the Nationalist Party, met with Hu on April 29 in the highest-level contact between the two sides since 1949.

Taiwanese President Chen has accused China of trying to use Soong's visit to influence an upcoming Taiwanese election.

On Saturday, Taiwanese are to elect delegates to an assembly that will vote on proposed reforms including whether to allow public referendums to amend the island's constitution. Beijing fears that could lead to a public vote on Taiwanese independence.

crazyazn SG

These Commies go behind Taiwan's back and sign an MOU with those despicable people at WHO.

"The memorandum, signed by China and the WHO Secretariat last Saturday, stipulates that Taiwan has to apply for the WHO's technical assistance through China and that all exchanges between Taiwan and the WHO have to be approved by Beijing."

Ah Bian is correct, never trust the Dirty Mainlanders , totally untrustworthy lot .

As more of this is coming out, All that rubbish Lien and Soong were saying about how they came to an uinderstanding with Hu is all going down the Toilet. They are coming out like real stupid people. Idiots of the highest order.
Power to Ah Bian .

The PRC talks about Autonomy for the ROC if there is unification but look whats happening,no unificaton but these guys just can't keep their hands off, same as in HK.

Now they also want HK to fly PRC Flags.even though HK -SAR has it's own. Autonomy for HK for 50 years.What a joke.

Bigger joke is all those people who keep saying One Country Two system is working Smile Surprised Shocked

suntze SG

Bigger joke is all those people who keep saying One Country Two system is working

It's working reasonably well for Hong Kong. For Taiwan, I agree it is not going to work as the Taiwanese have a choice, unlike HK ppl.

As long as cross-straits relationship remains stable, I believe it will benefit both sides to maintain status quo. Both China and Taiwan will prosper due to closer economic and cultural integration. Further, and more importantly this allows the time and provides the incentive for China to open up further. China will unavoidably be moved along the path towards greater accountability, rule of law and ultimately, to democratise their political institutions.

IMO, whether to reunify or not should be left to future generations to freely decide for themselves.

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