A brief reprieve

Relations between China and Taiwan have been strained since the two countries split in 1949.

The economic deal between China and Taiwan is heralded as 8220;unprecedented8221;, why?

Relations between China and Taiwan have been strained since the two countries split in 1949. Technically, the two countries remain at war since China fails to accept Taiwanese sovereignty. This round of negotiations comes after a 60-year hiatus. The deal is a step towards normalising trade relations between the two rivals. Direct transport links between the two countries have been restricted since 1970 8211; the new deal signed between the two powers alter this. Benefits of this deal are purely economic; shipping links will save over 100 million in costs per year. Consisting of 13 agreements on charter flights, cargo routes, trade shipments and postal links marks a remarkable shift in policy by the new government of KMT8217;s Ma Ying-jeou.

How have the Taiwanese reacted to the shift in policy?

A change in policy could be foreseen since the mid-June talks 8211; the first high level talks following the presidency of nationalist Chen Shui-bian. Newly elected Ma-Ying-yeou came to power with a mandate of strengthening ties with China and attempting to smooth relations. This shift is not appreciated by all facets of society 8211; though welcomed by the middle class this has angered those who harbor fears about China8217;s aggressive policy towards Taiwan. Further, charges have been issued against Ma alleging that his decision is a breach of Article 104 of the constitution whereby he has signed deal with foreign governments, which could potentially overthrow the government. Local Taiwanese have taken to the streets protesting against Chinese Chen Yunlin8217;s visit.

Why have relations between China and Taiwan been so strained?

Taiwan demands sovereignty, which China denies. Tensions have been exacerbated by the Anti-Secession Law, which China legalised in 2005. By this law China has the right to protect its territory by 8220;non-peaceful means.8221; This obviously creates a source of tension for the Taiwanese added by the presence of hundreds of Chinese ballistic missiles along the Taiwan Straits. Taiwan devotes roughly 3 per cent of its GDP to defense against China8217;s 11.6 per cent. Further, it appears the China8217;s activities along the Taiwan Straits are targeted directly against Taiwan as can be seen from the large-scale build up of amphibious tanks along Taiwan8217;s shores.

How does this fit into the 8220;One-China8221; policy?

China believes that there is only one China and that Taiwan is an inalienable part of it. Therefore, the 8220;One-China8221; policy remains on track. Taiwan8217;s protestors who took to the streets protested the sale of sovereignty. However, despite the 8220;One-China8221; policy, which was accepted by the Carter government, the Taiwanese got their share of the deal too. Under the Taiwan Relations Act, the Taiwanese are legally protected by the US. The Taiwan Relations Act also allows for the large-scale sale of weapons to China, fulfilling US promise, which allows for Taiwan to 8220;maintain a sufficient self-defense capability.8221; Further, the international community would not accept any attempts at outright annexation by the Chinese.