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    Greater China
     Sep 30, 2009
Taiwan, China tread carefully
By Cindy Sui

TAIPEI - Sixty years after Taiwan split from China at the end of a civil war in 1949, there are still no clear signs of how the two sides will resolve their dispute over the island's status, but as mainland China celebrates its victory in the war on October 1, the indications are stronger than ever that both sides are aiming for a peaceful solution, analysts say.

Beijing claims Taiwan is a renegade province, and has not renounced the use of force to take it back for reunification, despite recent warming ties. Over past decades, Taiwan has developed into a vibrant democracy whose people cherish their freedom and separate identity from China.

Nonetheless, the dramatic improvement in relations between the two sides in the past year makes a war unlikely, but so seems

 
unification or Taiwan independence.

China has proposed reunification under the so-called "One Country, Two Systems" formula that offers Hong Kong and Macau, former colonies of Britain and Portugal respectively, a high degree of autonomy, including a free press, with top leaders having to be endorsed by Beijing. But Taiwan has rejected this idea, having grown used to ruling itself democratically.

For now, Beijing and Taipei are shelving this issue, focusing instead on what they can agree on - strengthening economic ties, which are seen as mutually beneficial.

Analysts said that over time the sovereignty issue could perhaps work itself out without a military conflict, as long as neither side pushes the other's limits.

Beijing, for its part, has shown more maturity and flexibility in its handling of the Taiwan issue, experts said.

"There's no doubt in their propaganda, reunification is a sacred mission, but as time goes by, they have become more sophisticated and they know reality; they know the consequences of taking Taiwan back by force," said Arthur Ding, secretary general of the Taipei-based Council of Advanced Policy Studies.

Just a few years ago under an older generation of leaders, China often saber-rattled, warning of war if the island dragged its feet on unifying. Now, it prefers to let its economic clout do the talking.

Instead of threatening war if Taiwan moves toward independence as previous generations of China's leadership have done, China's current central leadership led by President Hu Jintao seems to have a stronger understanding of Taiwan's politics as a democracy. They prefer to avoid angering Taiwanese people, and to woo them instead, for instance by allowing thousands of Chinese tourists to visit the island each month, from just a trickle before.

As Taiwan's biggest trade partner, China has much power to wield.

Annual trade between the two sides amounts to about US$130 billion and tens of billions of dollars have been invested by Taiwanese businesses in China - the island's biggest investment destination. More than 1 million Taiwanese now live and work in China, the island's biggest export market.

Since Taiwan's China-friendly President Ma Ying-jeou took office last year, direct cross-strait flights and shipping links have been launched. Taiwan has also agreed to allow Chinese investment in 100 sectors, including banking, securities and real estate.

The two sides hope to sign an economic pact next year, which will make their economies even more interdependent.

"In Chinese leaders' minds, there's no doubt they hope economic ties will help them reach their final goal of eventual reunification," said Ding.

In a sign that China's influence on the island is growing, recently hotel and tourism industry officials in the typically pro-independent south Taiwanese city of Kaohsiung urged the city government not to show a film about exiled Uyghur leader Rebiya Kadeer that China frowns on. The industries feared a further loss of business, after Chinese delegations canceled bookings due to China's anger over a recent Taiwan visit by the Dalai Lama, the exiled Tibetan spiritual leader whom Beijing considers a separatist.

As a result, the Kaohsiung mayor decided to pull the film from the festival and screen it early to defuse the controversy. But the city later decided to show the film at the festival nonetheless, due to its popularity. However, Taiwan's central government has refused Rebiya Kadeer an entry visa to visit Taiwan after she accepted an invitation by some Taiwanese groups. Taiwan likely made the decision to avoid damaging relations with China. Beijing accuses Kadeer of being a separatist and of orchestrating the July 5 riots in Urumqi, the capital of Xinjiang, that left around 200 people dead.
Chinese tour groups have canceled large numbers of hotel bookings in Kaohsiung for September and there are reports Chinese delegations and tourists are staying away from the city in October as well. In just one year since tourism was opened between the two sides, Chinese tourists now make up 30% of the total, according to industry officials who bemoan the loss of business and have complained about the city's decision to show the film.

"In terms of dealing with Taiwan independence, all China has to do now is apply a little pressure, such as by telling mainland tour groups to skip Kaohsiung and they will listen," said Sung Kuo-chen, a political science professor at National Cheng-chi University's Institute of International Relations. "This creates a lot of pressure on even pro-independence politicians like Kaohsiung's mayor."

Such a trend suggests even the traditionally pro-independence opposition Democratic Progressive Party (DPP) in Taiwan may have to become more centrist so as not to lose Chinese business and ultimately votes.

"If this trend continues, Taiwan will basically be reunified with China in all aspects but name," said Sung.

But there's a limit to how much pressure the Taiwanese can take from China. When it comes to their cherished freedoms - including the freedom to show a film - Taiwanese are showing an unwillingness to give in.

Surveys show most Taiwanese people favor neither unification nor independence, but maintaining the status quo.

It's unclear whether Taiwanese people will eventually warm up to some form of unification with full autonomy for Taiwan as China democratizes or becomes more economically advanced.

It also remains to be seen whether future generations of Chinese leaders will see unifying with Taiwan as important as the previous generations. Current Chinese leaders have attached more emphasis on preventing independence than unifying.

The outcome of closer economic ties and increased interactions may not be what China's leaders expected, analysts say. Increased interaction with Taiwan means more Chinese people are seeing for the first time what democracy in a Chinese society is like.

While mainlanders have laughed at fights in Taiwan's legislature, they can also see officials in Taiwan are held accountable. Recent examples include former president Chen Shui-bian being sentenced to life imprisonment for corruption and former premier Liu Chao-shiuan being forced to step down over the administration's poor response to Typhoon Morakot.

"The value of Taiwan to China will depend on how China will evolve in coming decades," Ding said. "With regard to democracy, they can learn something from Taiwan."

Regardless of what may happen, it's unlikely the two sides will return to their hostile relationship of the past, experts said.

"We can't turn back. Taiwan will rely more and more on China's market. The two economies are increasingly interlinked," said Sung.

Nonetheless, they remain heavily armed against each other. China has around 1,000 missiles targeted at Taiwan and Taipei continues to make major arms purchases.

And there's no telling when a peace treaty will be signed.

"They should remove the 1,000 missiles. We certainly don't want to negotiate a peace agreement under the threat of attack," Ma said recently.

"We still have a lot of differences that will take a lot of wisdom and pragmatism [to resolve]."

Cindy Sui is a freelance journalist based in Taipei.

(Copyright 2009 Asia Times Online (Holdings) Ltd. All rights reserved. Please contact us about sales, syndication and republishing.)


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