China Will Use Peaceful Development to Reunite Taiwan (Update2)
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By Eugene Tang and Janet Ong
Dec. 31 (Bloomberg) -- Chinese President Hu Jintao said his government will pursue “peaceful development” with Taiwan, in a policy shift that underscores how closer trade ties are changing China’s attempt to reunite with the self-administered island.
The world’s fourth-largest economy, expanding at double the pace of Taiwan’s, is willing to sign a “comprehensive treaty of economic cooperation that complements each other’s competitive advantages” and needs, Hu said today in a televised speech in Beijing. He pledged to protect Taiwan’s investments in China and urged Chinese companies to venture to the island.
China and Taiwan resumed direct flights, shipping and postal services across the Taiwan Strait on Dec. 15, after Ma Ying-jeou was elected as the island’s president in March with a pledge to improve ties with the mainland and abandon his predecessor’s pro- independence stance.
“China’s Taiwan policy is moving in step with the changing realities of modern-day politics and the broader economic environment,” said Liu Hong, director of the Taiwan Research Institute at the Beijing Union University. “This is a turning point in the history of relations across the strait.”
The Chinese Communist Party in 1978 dropped its pledge of “liberation by force” to repatriate Taiwan, replacing it with a policy of “peaceful reunification.” Since then, about 1 million Taiwanese have moved to China to live and work, investing an estimated $150 billion.
Taiwanese Visiting China
As many as 7 million Taiwan residents may have visited China, trips that 30 years ago were considered treasonous and punishable by life imprisonment.
Leaders of Taiwan’s ruling Kuomintang party and the Chinese Communist Party met in Shanghai on Dec. 20 to foster economic ties. China offered 130 billion yuan ($19 billion) of loans to Taiwan companies operating on the mainland and to buy $2 billion of flat-panel displays from the island’s companies.
“Relations across the Taiwan Strait have advanced in leaps and bounds in the past 30 years,” said Wang Yi, director of the Chinese government’s Taiwan Affairs Office, responsible for relations with the island.
The governments of China and Taiwan, administered separately since the end of a civil war in 1949, are technically still in a state of confrontation. The world’s largest regular army has more than 900 missiles along China’s southeastern coast, aimed at Taiwan, while the Taiwanese military is planning to buy $6.5 billion of U.S. weapons including Lockheed Martin Corp.’s Patriot anti-missile systems.
Formal Truce
Hu, chairman of China’s military commission with direct control over the country’s armed forces, today offered to sign a formal armistice with Taiwan. The two militaries can meet regularly to build mutual trust, and create a mechanism to manage risk and lessen tension across the Taiwan Strait, he said.
“Peaceful development is in the best interest of both China and Taiwan,” Hu said, while reiterating that the mainland will oppose any attempt by Taiwan to seek independence.
The Chinese leader’s address today was attended by members of China’s Politburo, the highest policy-making body of the Communist Party, as well as officers from the country’s army.
Hu today encouraged mainland companies to invest in Taiwan and invite Taiwanese companies to reciprocate.
World Health Assembly
China replaced Taiwan in the United Nations General Assembly in 1971, and has blocked the island’s attempts to join world bodies or participate in global events, claiming that any role would be a de facto recognition of Taiwan’s sovereignty.
Only 23 countries, mostly in the Pacific, Africa and South America, including Paraguay, have formal diplomatic ties with Taiwan.
China is willing to hold talks on Taiwan’s “non-government economic and cultural exchanges” with foreign nations, and is open to “reasonable arrangements” for Taiwan’s participation in international organizations in ways that don’t hurt the “One China” principle, Hu said today.
Taiwan is discussing with China the possibility of the island participating in the World Health Assembly, the Taipei- based Central News Agency said yesterday, citing an interview with Ma.
To contact the reporters on this story: Eugene Tang in Beijing on eugenetang@bloomberg.net; Janet Ong in Taipei at jong3@bloomberg.net
Last Updated: December 31, 2008 02:46 EST
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