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    Greater China
     Apr 5, 2006
EU-Taiwan: It's all business
By Axel Berkofsky

While policymakers in the European capital Brussels acknowledge Taiwan's existence when there are opportunities to make money, they turn silent when cross-strait tensions threaten to work their way on to the agenda. To avoid any kind of "misunderstandings" about the nature of EU-Taiwan relations, the European Union repeatedly points out that Brussels only discusses "non-political matters" with Taipei.

Like the US, the EU officially espouses a "one-China principle", acknowledging that there is only one China and that Taiwan is a



part of China. However, it is at least questionable whether the one-China policy automatically forbids the EU to address security issues with Taiwan that are of direct interest to business, such as the sensitive matter of embargoed arms.

The European parliament takes a different, and by Brussels standards a "courageous", position from the bureaucrats when dealing with Taipei. Much to Beijing's chagrin, the parliament has passed numerous resolutions over the past two years urging the member states not to lift the weapons embargo imposed on mainland China after the 1989 Tiananmen massacre. The parliament cites lack of progress in human rights, the continuing imprisonment of peaceful Tiananmen demonstrators, and military threats against Taiwan.

To be fair, Europe's elected lawmakers are less bound by political realities and sensitivities than their counterparts outside Europe. Members of parliament worry less about being accused of "interfering" in China's internal affairs. Brussels-based Chinese diplomats, for their part, seem to have given up complaining about parliament's harsh criticism on the human-rights situation in China. The interaction between Beijing and the Foreign Affairs Committee must be described as limited at best.

Then again, the influence of parliament on the EU's Taiwan policies is limited at best because of its advisory role on foreign and security policies. The assembly's advice, however, is seldom appreciated when Taiwan and the Taiwan Strait make it on to the agenda. Official diplomatic relations or not, the EU's reluctance to talk politics and East Asian security with Taiwan appears odd in the light of strong EU-Taiwan trade and business relations.

Taiwan is the EU's tenth-largest trading partner and its fourth-biggest in Asia after mainland China, Japan and South Korea. Bilateral trade in 2004 amounted to roughly 37 billion euros (US$34 billion). The EU accounts for roughly 11.5% of Taiwan's external trade in goods, buys 13% of Taiwan's exports and provides 10% of its imports. Common sense suggests that the EU should be more involved in efforts to ease cross-strait tensions, going beyond simply supporting "constructive dialogue" between Beijing and Taipei.

"Any arrangement between Beijing and Taipei can only be achieved on a mutually acceptable basis, with reference also to the wishes of the Taiwanese population." Such is the official position. The increasing the number of Chinese missiles (currently about 700) directed at Taiwan, however, is hardly "mutually acceptable" to one of the parties concerned and does not present mainland China as a self-described "responsible rising foreign-policy actor".

To be fair, Taiwan's leaders do some provocative things too. Taipei's recent decision in effect to abolish its National Unification Council was politically unwise, alarming Beijing's policymakers into thinking that Taipei was hell-bent for de jure independence, something that Beijing says would be a pretext for an attack on the island.

Nonetheless, the question remains: Why is the EU so reluctant to get more involved in cross-strait issues? Are they too politically sensitive? Does it reflect concerns about possible economic retaliation by Beijing for "interfering" in China's internal affairs? It is probably a bit of both, coupled with Brussels' fears of jeopardizing the smooth implementation of its envisaged "strategic partnership" with Beijing that is so close to the heart of EU policymakers.

However, Beijing's occasional threats to sever or downgrade business ties if the EU gets more involved in cross-strait relations should not necessarily be taken at face value. Developing China still needs Europe as much as Europe needs China. Beijing will think twice before jeopardizing such a lucrative business arrangement. Besides, discussing sensitive issues should be part any "strategic partnership" and does not necessarily constitute the interference in internal affairs that Beijing seems so concerned about.

The EU deserves credit for openly opposing China's Anti-Secession Law that the National People's Congress passed a year ago and which formally authorizes Beijing to use force should Taipei declare independence. Opposition to the law led the EU to postpone lifting the weapons embargo. On the other hand, it did not result in any Chinese economic retaliation and must have surprised Beijing's increasingly cocky policymakers, who had hoped that it was all business over principles when dealing with Brussels.

However, ignoring Taiwan politically does not necessarily boost the EU's credibility as an international foreign-policy actor, and Brussels should make sure not to betray its own values, such as democracy, freedom of speech and human rights. Indeed, the EU is not shy about openly and at times vehemently criticizing the human-rights records of North Korea and Myanmar, while muting its criticism of China's arguably equally poor human-rights record.

It remains to be seen whether the policy of ignoring democratic Taiwan politically and in terms of security is sustainable and in the EU's interest in view of mainland China's growing regional and global weight and influence. The European Union envisages itself as a foreign- and security-policy actor with a global reach that includes East Asia. Judging by its lack of enthusiasm to develop a more outspoken position on cross-strait relations and tensions, however, East Asia minus Taiwan is what it really is.

Hiding behind the one-China principle forever and deferring to Beijing's political sensitivities should not replace a more comprehensive policy in East Asia and is not worthy of an institution that in theory promotes democracy, free speech and human rights. For the time being, though, it is realpolitik at its best - or worst, depending on what side of the Taiwan Strait you live in.

Dr Axel Berkofsky is a senior policy analyst at the European Policy Center in Brussels. The views expressed here are his own.

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Blame it on the French (Dec 14, '05)

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