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.
Kurt M. Campbell is Senior Vice President and Director of the International Security Program at the Center for Strategic and International Studies (CSIS) and Deputy Director of the Aspen Strategy Group. Derek J. Mitchell is Senior Fellow for Asia at CSIS.
Does Taiwanese President Ma Ying-jeou's diplomatic strategy amount to a case of "Finlandization," as Taipei drifts out of Washington's sphere of influence and into Beijing's? Or is Taiwan simply pursuing détente, while remaining a strong U.S. ally and a beacon of democratic values?
TROUBLE ISLAND
The April standoff on Hainan Island following the collision of a U.S. spy plane with a Chinese fighter jet was a striking reminder of how troubled the relationship remains between the world's most powerful country and its most populous one. The sources of contention in that standoff -- the purpose of reconnaissance flights, the interpretation of national sovereignty, and the handling of public diplomacy -- could provoke a future standoff on another, more critical island: Taiwan. Although the spy-plane drama ended happily with the homecoming of the detained American crew, unresolved military and diplomatic issues promise greater discord to come in the U.S.-China relationship -- a simmering conflict that could soon explode over the status of Taiwan.
Washington's official relationship with Beijing on the one hand and its unofficial relationship with Taipei on the other represent perhaps the most complex foreign-policy balancing act in the world today. At stake are a number of core U.S. foreign policy goals: the promotion of democracy, the preservation of U.S. credibility, loyalty to traditional allies and friends, the engagement and integration of an emerging power into the international system, and the maintenance of peace and stability in Asia as a whole. The interplay and clash among these various goals make the Taiwan Strait an unpredictable and therefore dangerous place. Moreover, Taiwan's recent democratization has undermined the "one-China" policy and made the prospect of conflict increasingly likely. Compounding the problem is the deep division within the U.S. foreign policy elite over how to maintain the increasingly fragile peace there. Perhaps nowhere else on the globe is the situation so seemingly intractable and the prospect of a major war involving the United States so real.
ONE CHINA, ONE TAIWAN
When Mao Zedong and Chiang Kai-shek ruled the mainland and Taiwan, respectively, the issue at stake was not whether there was only one China, but who its legitimate ruler was. Chiang sought to retake the mainland for the Republic of China (ROC), while the People's Republic of China (PRC) sought (and continues to seek) to bring the "renegade province" of Taiwan back into the fold, thus completing the Chinese communist revolution.
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George W. Bush was right to rebuke Taiwan's president over his plans for a referendum on relations with China. Administration critics assume that democracy and independence are inseparable, that the "one China" principle is no longer useful, and that China would never go to war over Taiwan. But they are wrong on all three counts and fail to appreciate the dangers that may lie ahead.
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.
Although neither China nor Taiwan wants war, both pursue policies that raise the risk of bloodshed: the first by issuing vague warnings, the second by testing their limits. To stabilize the situation, the Bush administration should help broker a temporary agreement under which Taipei would put off independence and Beijing would stop threatening to attack.

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