What Taiwan Wants
Taiwan's presidential election might prove to be a perilous watershed in its relationship with China. Can Beijing rein in the renegade?
Trade Links
China's Economic Embrace
Hong Kong: Push and Shove
It's not just Taiwan. China also has to deal with growing pressure for democracy in Hong Kong
Strait Talking: Chen Shui-bian
TIME's exclusive interview with Taiwan's president
Feb. 23, 2004

Who's Who
Taiwan's ethnic groups each have different attitudes toward the mainland
Cross-Strait Strains
Relations between Taiwan and China have been tense for more than half a century
Mainland Bound
Companies from Taiwan are investing in China on an ever larger scale

Hong Kong
Standing up to China
[07/14/2003]
Chen Shui-bian
Taiwan's man in the middle
[05/21/2001]
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China is out of step with these developments. It still views President Chen Shui-bian as an aberration, as if removing him from office will turn back the clock and roll forth the forces of reunification. Yet Taiwan's clear democratic desire today is to eschew the embrace of the motherland. To Beijing, therefore, the KMT's conversion—genuine or not—is a surprising, and potentially disastrous, development. Though the Communists and Nationalists were adversaries, they at least shared the same goal: reunification of China and Taiwan. Not anymore. The KMT is now, at best, the party of the status quo, well aware that plumping for closer ties with China is a sure vote loser. "The issue of reunification cannot be answered at this time," Lien Chan told Time in a recent interview. "The interests of Taiwan must be considered first." This means Beijing is in a bind even if Lien is victorious. "The Chinese leadership had expected Chen Shui-bian to try to win the election by opposing reunification," says an adviser to the mainland's Foreign Ministry. "But it's deeply concerned to see the KMT following suit." Says National Taiwan University political scientist Lee: "The only two ideologies in Taiwan now are independence and the status quo—reunification is dead."

China has made no secret of its anxiety about the election. When the National People's Congress opened in Beijing last week, Premier Wen Jiabao reiterated his offer to hold talks with Taipei if it accepts the "one China" principle, but he emphasized that "we stand firmly opposed to any form of separatist activities aimed at Taiwan independence and will never allow anyone to split Taiwan from China by any means." But the Chinese leadership doesn't know how to blunt Taiwan's growing sense of its own identity. In the past, it tried to cow Taipei by hurling invective, or—in 1996—by launching missiles into the Taiwan Strait. But during the last presidential election in 2000, Beijing's bluster backfired, helping Chen win office by making him seem like a plucky hero willing to confront the playground bully. Since then, China has been exerting its economic rather than military muscle. In a bid to win over the island's business community—which prevalently favors the political status quo but closer economic ties with the mainland—Beijing has welcomed investment from Taiwan and pushed for direct transport links. It has also lobbied governments that have influence over Taipei, such as the U.S. and French, to tell Chen to cool it. This approach has yielded some dividends for China. In December, President George W. Bush emerged from a 40-minute White House meeting with Premier Wen and declared that the U.S. opposes any move by Chen that unilaterally changes the status quo—a neat irony, given America's simultaneous enthusiasm for bringing democracy to Iraq. The following month, when Chinese President Hu Jintao was in Paris, his French counterpart Jacques Chirac joined the chorus of China well-wishers, and he called Taiwan's referendum a "grave mistake."

But even international pressure is not as effective as it used to be, not least because as Taiwan becomes a more mature democracy, its leaders—whether from the DPP or the KMT—must increasingly heed the views and needs of the majority of the electorate. With the "one country, two systems" model looking more and more unacceptable, China's best bet of cajoling Taiwan into submission might be the rich promise of economic integration. Yet even as Taiwan investment in China has swelled to a cumulative total of some $100 billion by some estimates, independence sentiment rises. A more flexible Beijing might try to offer additional sweeteners to Taipei. A foreign-policy expert in the Chinese capital suggests, for instance, allowing Taiwan to join some international institutions such as the WHO. This election "should be an overdue chance to adjust Taiwan policy," he says, "but that's not happening."

Instead, Beijing can only hope that the KMT wins—and ready its military so that it has an alternative means of ensuring that the independence movement doesn't go too far. Beijing has never ruled out retaking Taiwan by force, and years of double-digit growth in the mainland's defense spending have finally made this a feasible strategy. By settling almost all their border disputes, China's leaders can now target the country's military investment on two goals: attacking Taiwan, and deterring U.S. involvement in the conflict. Over the past 18 months, observers have detected a sharp uptick in China's military shipbuilding, especially of submarines and of amphibious landing craft capable of ferrying 400 soldiers and 30 tanks across the rough Taiwan Strait. Even more important is new technology to target U.S. aircraft carriers based in Japan. Defense experts believe China is still a decade away from being able to land troops on Taiwan's fortified shores. Nonetheless, says a Western diplomat in Beijing, "for the first time China's political leaders are at the point of having a credible military option."

China is unlikely, of course, to attack Taiwan militarily—Beijing would have too much to lose. But by showing that it has the capability to do so, it hopes to chill Taiwan's independence movement. Such brinkmanship won't work if the southern village of Tungkang is any barometer. TV celebrity Wang Ben-hu is winding down his show, but the audience is still charged. The crowd becomes so emotional that security guards muscle in to try to calm people down. An old man seated in the front row, no longer able to contain his feelings, rises to his feet and shouts, "China is China. Taiwan is Taiwan." For the first time in history, perhaps, that is something that Beijing—and the rest of the world—might have to come to terms with.

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Stuck in the Middle [December 16, 2003]
President Chen Shui-bian's calls for a referendum on Taiwan-China affairs may be pushing the U.S. away

Taking It to the Brink [December 11, 2004]
Ahead of next March's presidential election, President Chen Shui-bian is fanning flames across the Taiwan Strait. Is he going too far?

History's Lessons [October 21, 2003]
China's rulers would be wise to remember the fall of Chiang Kai-shek

Itching for a Fight [September 16, 2003]
Beijing may have learned not to meddle in Taiwan's affairs around election time

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FROM THE MARCH 15, 2004 ISSUE OF TIME MAGAZINE; POSTED MONDAY, MARCH 8, 2004


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