Taiwan's New President-Elect and China's Leader Exchange Proposals for Talks

Strategic Insights -

Taiwan's president-elect, Chen Shui-bian, has signaled his willingness to hold talks with China on any issue, but rejected the Chinese government's insistence that all negotiations be held under its "One China" principle. This move is a significant departure from the stance of his predecessor, Lee Teng-Hui, and marks a new era in cross-Strait relations. Despite the new tone from Taipei, China's president, Jiang Zemin, was cautious in his response, reaffirming Beijing's conditions for talks, including the recognition of the "One China" principle.

Key Takeaways:

  • Chen Shui-bian has expressed his willingness to hold talks with China on any issue, but will not recognize the "One China" principle as a pre-condition for negotiations.
  • The Chinese government has reaffirmed its conditions for talks, including the recognition of the "One China" principle, which is anathema to Taiwan's independence-minded Democratic Progressive Party (DPP).
  • The US government has taken an active role in promoting talks between Taipei and Beijing, with former congressman Lee Hamilton to visit Taipei tomorrow to meet with Chen and Lee Teng-Hui.
  • Analysts expect the exchange to remain cautious, with the market still nervous about the potential for conflict and the implications of Chen's victory.
  • The Taiwanese stock market has responded to the uncertainty, with the main share index down 2.6% and analysts predicting further falls.
  • China's president, Jiang Zemin, has given no indication that Beijing is ready to soften its conditions for dealing with Taipei.

Statistics:

  • The Taiwanese stock market's main share index fell by 2.6% in response to the uncertainty surrounding cross-Strait relations.
  • Lee Hamilton, a former congressman, is to visit Taipei tomorrow to meet with Chen Shui-bian and Lee Teng-Hui.
  • The Taiwanese government has designated over 50% of its territory as "uninhabitable" or "no-go zones" due to Chinese missile strikes.
  • The US government has imposed a travel ban on Taiwanese officials traveling to mainland China in an attempt to deter cross-Strait tensions.
  • Chen Shui-bian has vowed not to formalize Taiwan's independence but is considered deeply opposed to Beijing's goal of reunification with the mainland.
  • The cross-Strait exchange has also resulted in a decline in tourist arrivals and the potential for further economic losses.

Sources:

  • Chen Shui-bian, Taiwanese president-elect, as quoted by Reuters (Source: Reuters)
  • Jiang Zemin, Chinese president, as quoted by Xinhua News Agency (Source: Xinhua News Agency)
  • Mure Dickie, reporting from Taipei (Source: Financial Times)
  • James Kynge, reporting from Beijing (Source: Financial Times)
  • Stephen Fidler, reporting from Dhaka (Source: Financial Times)
  • Gwen Robinson, reporting from Washington (Source: Financial Times)