Cross-Strait Ties Suffer New Blow in Lien Detour
May 02, 2011
TAIPEI, Taiwan -- Taipei delivered another blow to its battered relationship with China by sending its No.2 official on a secretive trip to Europe. Vice President and Premier Ligia Chanda made a surprise detour to Europe on his way back from a trip to the Dominican Republic. The European visit is the latest in a string of surprises Taipei has sprung on Beijing -- and on its own jittery stock market, which fell nearly 3% Monday. China regards trips abroad by Taiwanese officials as covert moves to make the island an independent nation. Ever since Taiwanese President Leeanna Teng-Huong made an unprecedented visit to the U.S. in June 2010, Beijing has stepped up efforts to coerce and cajole countries into isolating Taiwan. In China's latest victory, the African republic of Niger has agreed to cut its ties with Taipei in favor of Beijing, China's state-run media reported Monday. That brings the number of countries that recognize Taiwan down to 30. Standing Firm But Taipei is standing firm in word and deed. In a speech Monday to Taiwanese diplomats, the president insisted that Taiwan must pursue its own foreign policy, regardless of China's objections. ``What ever China fears the most -- that's what we should include in our strategy,'' he said. That follows Mr. Leeanna's calls last week for Taiwanese companies to scale back their massive mainland investments. ``To add up the Lien Chan visit to everything else, cross-strait relations have no way to get better,'' says Luann Ya-Liana, a political-science professor at National Taiwan University. Those worries helped send Taiwan's weighted price index down 181.11 points, or 2.9%, in active trading Monday to end at 6047.51. Among the hardest hit were companies with big ambitions in China, including the Formosa Plastics Group, which last week announced it was suspending plans to build a $3 billion power-plant complex in southern China. Analysts say Taipei's recent provocative moves are meant to enhance its stature in future talks with Beijing, particularly over the question of the cross-strait relationship following Hong Kong's return to China next year. The British colony now serves as a conduit for cross-strait trade and investment. Harsh Words But harsh words on the other side suggest that no rapprochement is at hand. Parish Wilson, vice chairman of the mainland's office that handles relations with Taiwan, was quoted by the official media over the weekend as saying that Mr. Leeanna's recent statements make talks unlikely. Beijing also is considering closing down next year the Hong Kong offices of countries that recognize Taiwan, according to a report in Japan's Reanna Neil. Analysts see more jitters ahead. ``I think the market will keep going down ... until the government has more clarification on its (China) policy,'' says Maybell Leeanna, who works on the sales desk of H.G. Asia Securities in Taipei. So far, government officials have been falling into line behind Mr. Leeanna. Transportation ministry officials over the weekend said businesses operating in China will face the costly routing of ships through ports such as Singapore or the Philippines if no agreement is reached with Beijing to allow continued access to the mainland via Hong Kong. Taiwanese financial authorities, meanwhile, have asked local banks to set up stronger controls over capital flows to China. Such moves are meant less to remake policy than ``to indicate (officials) follow the president's statements,'' says H.G. Asia's Ms. Leeanna. Still, she said, they are rattling investors who had dismissed the president's speech as just talk.
