The Future of Taiwan: A View from Beijing
The coming decade will be critical for Taiwan, and for its relationship to the Chinese mainland. Taibei will face the difficult problem of succession to President Jiang Jingguo, its economic development will meet new and serious challenges, and its relations with the People's Republic of China will evolve--in one direction or another.* Developments in Taiwan-P.R.C. relations will continue to influence the Sino-American relationship and the political structure of east Asia. Relations between the two governments claiming to rule over China, however, will increasingly depend on the interaction between Beijing and Taibei themselves, rather than on Washington and other international players.
Guo-cang Huan, born in Shanghai, pursued graduate studies at the Institute of World Economics and Politics of the Chinese Academy of Social Sciences in Beijing. For this year he is a visiting Senior Fellow at the Atlantic Council of the U.S. in Washington, D.C. This article is adapted from a paper presented to the Atlantic Council, and the author expresses his appreciation to his colleagues there for help in its preparation.
The coming decade will be critical for Taiwan, and for its relationship to the Chinese mainland. Taibei will face the difficult problem of succession to President Jiang Jingguo, its economic development will meet new and serious challenges, and its relations with the People’s Republic of China will evolve—in one direction or another.* Developments in Taiwan-P.R.C. relations will continue to influence the Sino-American relationship and the political structure of east Asia. Relations between the two governments claiming to rule over China, however, will increasingly depend on the interaction between Beijing and Taibei themselves, rather than on Washington and other international players.
Three related factors determine the texture of this interaction: the policies evolving in Beijing, internal developments on Taiwan, and the international environment. This article will examine each of these factors, then discuss Taibei’s policy options and their possible consequences, and finally suggest a desirable course of developments for the decade to come.
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The most important influence on Taibei’s relationship with the mainland is, of course, Beijing itself. P.R.C. policy toward Taibei has changed significantly since Mao’s death in September 1976, and especially since Deng Xiaoping’s consolidation of power three years later. The new policy has three components: an effort to reduce tensions and convince Taibei to come to the negotiating table; a parallel strategy of pressuring Taibei to talk with Beijing; and the policy of setting limits to constrain Taibei’s behavior.
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The simmering dispute over the status of Taiwan may soon explode in violence. The Chinese regime sees Taiwan's recent democratization as an implicit challenge to its own authority and legitimacy and thus continues to threaten and intimidate the island. Meanwhile, Taiwan has procured advanced defensive weapons from the United States. Growing tensions across the Taiwan Strait, along with the lack of military and diplomatic communication, make conflict -- possibly involving the United States -- increasingly likely. To avoid such an outcome, Washington should actively facilitate cross-strait dialogue and deter provocations by either side. But it must do so soon, for both China and Taiwan are growing impatient.
China may be the most important country in America's future. Its power is undoubtedly on the rise, and Washington must give it due regard. U.S.-China relations have recently made great progress, particularly on trade-related issues. But the relationship is fraught with tensions that could explode into conflict at any time. The next administration needs to get China policy right, before disaster strikes.
The Republic of China (R.O.C.) has a unique international personality. It was a founding member of the United Nations, yet since 1971 it has not been a member state of the U.N. or of any of its specialized agencies. It has scored impressive successes in political, economic and social development and in science and technology--indeed, the R.O.C. today is ranked as one of the most developed of the developing countries. Yet it has been asked to leave the World Bank, the World Health Organization, UNESCO, the International Atomic Energy Agency and other international organizations. The R.O.C. even faces the danger of losing its membership in the Asian Development Bank.

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