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From the CIAO Atlas Map of Asia 

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CIAO DATE: 11/05

China and Taiwan: Uneasy Détente

September 21, 2005

International Crisis Group

Abstract

After drifting toward crisis for much of 2004, the outlook for stability across the Taiwan Strait has improved. Constraints on Taiwan pursuing pro-independence initiatives that risk conflict with China will likely remain strong through to the end of President Chen Shui-bian's term of office in 2008. These include a reinvigorated political opposition and Chinese initiatives that have won some poplar support in Taiwan and weakened the drive for independence. Most importantly, the U.S. appears determined to deter not only a Chinese attack but also provocative Taiwan independence moves.

Election politics, personal conviction, and the drive for a political legacy were key motives prompting President Chen and his government to break with earlier moderation on cross-strait issues and, between late 2003 and late 2004, pursue pro-independence initiatives that neither Beijing's warnings of war and diplomatic pressure nor positive trade and economic relations appeared able to halt. Chen's political opponents were put on the defensive, and business people hung back despite heavy investments in China. Concerned for cross-strait stability, however, the U.S. sought to rein in Chen, issuing repeated public statements and private official comments opposed to the proindependence initiatives.

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