Beijing and Taipei have been making preparations for the third round of ARATS-SEF talks to be held in May or June at which time additional agreements on finance, flights, and crime are expected. The global recession has precipitated a dramatic decline in cross-Strait trade and that, in turn, has contributed to accelerated plans to negotiate a comprehensive cross-Strait economic agreement. However, the planning for such an agreement has produced a storm of opposition protest in Taiwan, which represents the most serious challenge yet to President Ma's cross-Strait policies. Officials on both sides are speaking optimistically about finding a formula under which Taipei could be an observer at the World Health Assembly (WHA) in May. Although defense reports from both sides acknowledge reduced tensions, there is as yet no sign that Beijing will reduce the military threat directed at Taiwan.
In the first decade of the 21st Century there has been increasing awareness of environmental issues and recognition that these are now global in scope. This has occurred for many reasons and is perhaps best epitomized in the global warming discussion. The dramatic rise of China and India, in particular, has reoriented the debate about the sustainability of the current trajectory of fossil fuel usage and environmental degradation. Put quite simply, if the economic growth of China, initially, and then India were to follow the historical trajectory of fossil fuel energy usage and resource consumption that Japan, Taiwan, and Korea followed, the environmental impacts would be nothing short of monumental.
Topic:
Climate Change, Development, Energy Policy, and Environment
The economic crisis of 2008–09 is the second major crisis in just over a decade that Asia has endured. Unlike the Asian crisis of 1997–98, however, the current crisis originated mainly in the West. Asia's excessive reliance on net exports as the principal driver of economic growth since the 1997–98 crisis rendered it especially vulnerable to external shocks, and most Asian countries have paid dearly. The more open the economy, the more vulnerable it is to such shocks. The newly industrialized Asian economies (Singapore, Hong Kong, South Korea, and Taiwan), which are among the most open and dynamic in the world, are expected to contract by about 6 percent in 2009.
Topic:
Emerging Markets, International Trade and Finance, Regional Cooperation, Global Recession, and Financial Crisis
Political Geography:
Taiwan, Asia, South Korea, Singapore, and Hong Kong
China has become Taiwan's most important export and investment destination. This phenomenon is puzzling to realism as concerns for security externalities should discourage commerce between adversaries. Liberalism also has difficulty in accounting for this phenomenon because an absence of facilitative institutions should discourage commerce across the Taiwan Strait. This paper applies recent theoretical development on credible communication to this seemingly baffling situation. Whereas it has been suggested that commercial ties enable states to signal resolve short of military demonstration, I argue that these ties can also be used to credibly communicate reassurance and commitment to peaceful cooperation.
Beijing and Taipei made significant progress in improving cross-Strait relations this quarter. In May, “Chinese Taipei” participated for the first time as an observer in the World Health Assembly. In April, the third round of ARATS-SEF talks produced three new agreements and an understanding to open Taiwan to investors from the mainland. These developments have been well received in Taiwan. The progress over the past year has produced increasing de facto dealings between government officials from the two sides. The recent precipitous decline in cross-Strait trade appears to be bottoming out, and Beijing has taken steps to help Taiwan economically. Although there is still no indication that Beijing has reduced the military forces targeted at Taiwan, Hu Jintao has called for preparations concerning a peace agreement and confidence building measures.
April 1, 2009: Presidents Barack Obama and Hu Jintao meet at the G20 summit in London. April 6, 2009: Association for Relations across the Taiwan Straits (ARATS) Deputy Chairman An Min leads 7-member delegation to Taiwan. April 7, 2009: Mainland Affairs Council (MAC) releases “policy explanation” of Economic Cooperation Framework Agreement (ECFA).
Beijing and Taipei made little progress in cross-Strait relations this quarter. Typhoon Morakot and other extraneous factors combined to frustrate progress but did not change the positive momentum. Preparations are underway for talks on an Economic Cooperation Framework Agreement (ECFA) and the fourth round of SEF-ARATS talks later this year. Cross-Strait trade is beginning to recover from the precipitous decline caused by the great recession and the first mainland investments in Taiwan, although small, have been approved. There were no significant developments on security issues. Progress in better relations should resume in the months ahead.