MakePolicy.com

Taiwan and China are currently discussing pacts to enhance economic cooperation. Taiwan and China split amid civil war in 1949, but Beijing continues to claim the island as part of its territory.

But there has been a siginificant alteration in the Taiwanese anti-China policy recently. The President Ma Ying-jeou has made a partial free trade agreement with Beijing his top goal this year. The belief is that in doing so it would help Taiwan maintain its competitive edge in the region. The agreement will permit the free flow of many goods, services and capital across the 100-mile (160-kilometer) -wide Taiwan Strait. Notably however, agricultural produce would be exempt, to appease Taiwanese farmers. There has also been discussion between the two sides to increase the number of regular air flights, allowing banks to establish mutual branches, and cooperation on cross-border criminal investigations. Taiwanese officials have said the island will announce an initiative that would allow Chinese companies to invest in Taiwan.

Does this mean that China and Taiwan will soon realize a de facto type if not formal re-unifaction process?

Regionally, China is not the only country that Taiwan is interested in developing warmer relations. President Ma Ying-jeou is also keen to develop stronger economic relations with Japan. And this year Taiwan is expected to open an office in Hokkaido to promote culture and tourism between the two sides. Japan was Taiwans second largest trading partner in 2008 with a volume of US 64 billion dollars worth of business.

Taiwan’s diplomacy looks like it is following flexible lines and trying to achieve greater visibility for itself in the international community.

(The United States, of course, switched diplomatic recognition of Taiwan to China in 1979 but still is obliged to help Taiwan defend itself under the Taiwan Relations Act. And the US continues to remain Taiwans largest arms supplier.)

Related posts:

1. China – Japan Relations What surprised me this morning was the above image on...
2. Seeking Special Relations The recent change in political and economic landscapes has meant...
3. Leaving North Korea to China Does the US want China to take more of a...
4. Border Security Japan’s border security continues to remain a critical issue....