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The importance on June 01, 2004

The importance of open channels

By Ku Er-teh
China's Taiwan Affairs Office issued a seven-point statement three days before President Chen Shui-bian's inauguration on May 20. The statement was generally seen as a combination of carrot and stick. Opposition parties and anti-Chen activists emphasized the stick, claiming that a war might break out if Chen did not affirm the "one China" principle in his speech.

However, if China was truly in a rush to unify Taiwan, then, after saying those cruel words, would it have humbly asked Taipei to admit that "there is only one China in the world?" Or that what China strives for is merely "the future prosperity of peaceful reunification of the motherland?"

Neither Taipei's recognition of "one China" nor Beijing's pursuit of future prosperity is an urgent enough matter to trigger a cross-strait war. I have no intention of offending China's leaders over their beliefs and dedication in pursuing reunification. The leaders who rule this major Asian power are not so stupid that they cannot distinguish "tactics" from "strategy." Beijing would have ignored Chen's speech if it had no hope for him. So why did it issue the statement three days before the inauguration? There were obviously tactics involved.

A person once deeply involved in the triangular relationship of Taiwan, China and the US privately revealed that "in light of its timing, Beijing's statement was clearly made to Washington." After his re-election, Chen sent then Presidential Office secretary-general Chiou I-jen and then Mainland Affairs Council chairwoman Tsai Ing-wen to the US, where they explained the speech to Washington.

As one corner of the triangular relationship, Washington would have informed Beijing of Taipei's attitude. This is exactly why officials from the Presidential Office said that Beijing was aware of the speech's content in advance.

Beijing therefore issued the statement right after midnight of May 16 -- nine hours before a new working week began in Taiwan, 21 hours before it began in Washington. This allowed Taiwan and the US to have sufficient time to communicate before Taipei could deliver its message to Beijing through Washington.

Beijing was not unconcerned about Chen's remarks. It was dissatisfied with the creation of a new constitution that Chen was about to discuss. The statement was therefore issued to push Washington to "adjust" its content in the remaining three days.

From a tactical perspective, we should not exaggerate the sense of threat, thinking that China might have fired its missiles if Chen did not mention "one China." Our observations should focus on Chen's discussion of a new constitution.

Was Chen's discussion of this issue acceptable to Washington? -- that is, was the wording good enough so that Washington could force Beijing to swallow it?

A tactical mistake may also have occured here. Previously, the three countries had kept private communication channels open until then president Lee Teng-hui proposed the "special state-to-state" model for cross-strait relations in 1999.

After Chen took office in 2000, Taipei's channels to Beijing and even Washington closed. Since Taipei and Washington could no longer communicate with each other over and under the table simultaneously, there may have been a gap between official statements and subtle messages delivered to Beijing via Washington. With the Taipei-Beijing channels both over and under the table closed, it was even more difficult for the two sides to fully understand each other.

Tactically speaking, Taipei is at a disadvantage today, as it must rely on Washington when negotiating the triangular relationship. Meanwhile, due to a lack of private channels, Washington has been suspicious about the credibility of the messages from Taipei, which requests that Washington deliver and endorse its messages while not being cognizant of their meaning.

Let us put aside the tactical issue. The fundamental problem lies in "one China." Although Chinese President Hu Jintao's "seven points" are not much of a departure from former president Jiang Zemin's eight points, Beijing has clearly listed negotiable issues that the two sides have argued over for a decade. These include "international living space of the Taiwan region commensurate with its status," which allows Taiwan to take part in Asia-Pacific organizations, and the sensitive issue of "establishing a mechanism of mutual trust in the military field." All this has been offered in exchange for acceptance of the "one China" principle.

Beijing was not so naive to think that Chen would directly say yes or no to "one China" on May 20. But if Chen really views "one China" as an option, he must make it a negotiable goal. Emphasizing the "Republic of China" is a passive method. Instead, he has to build a "one China" discourse that can influence China's thinking -- as was the case with Lee's controversial "seven regions theory," the confederation theory and the "one China, two seats" formula. But if Chen won't take the initiative, he can only rely on Washington to define the status quo.

Ku Er-teh is a freelance writer.

 

Business sense has no borders

It is unfortunate that China is only intensifying efforts to damage Taiwan's interests. A few weeks ago, Beijing blocked Taiwan's participation as an observer in the World Health Assembly, an action that flies in the face of the idea of "medicine without borders." Now it is returning to another well-worn tactic: interfering with Taiwanese businesspeople operating in China.

On numerous occasions China has used its media outlets to warn Taiwanese businesspeople against supporting the Democratic Progressive Party (DPP) or face the consequences.

Last year, Chi Mei Group chairman Hsu Wen-lung , a firm supporter of President Chen Shui-bian , announced he would consider resigning from his post as a presidential advisor due to pressure from China. Then, three weeks ago, he resigned as group chairman.

In light of all this, it is risible that the Chinese government is wining and dining Chen Yu-hao, a man wanted for economic crimes in Taiwan. Prior to the presidential election, China used Chen Yu-hao to hurl accusations of corruption in the direction of the Presidential Office and to suggest that the first lady, Wu Shu-chen , had accepted bribes. China said he could provide concrete evidence and was willing to return to Taiwan to take a polygraph test. But since the defeat of the pan-blue alliance, Chen seems to have vanished. Nothing has been heard of him.

Beijing frequently uses Taiwanese businesspeople of disrepute as tools with which to attack the government and the Taiwanese business community. Conversely, it wants nothing to do with businesspeople of good standing in the marketplace. Yet tactics of this nature are unlikely to win the hearts and minds of the Taiwanese people.

The "intelligence" Beijing has gathered from some of Taiwan's "old guard" -- dejected politicians, some businesspeople, old soldiers and retired intelligence agents -- amounts to little more than hyperbole. At best, it has been used to concoct clumsily one-sided stories.

Yet the Beijing authorities treasure this information and employ it in their efforts to develop important policies. Not surprisingly, all sorts of mistakes have resulted from this.

When, as in this case, ham-fisted political decisions intrude upon good economic management, it is little wonder that Beijing continues to force Taiwanese public opinion toward independence. How could one blame Taiwanese people for drawing a line in the sand and supporting "one country on each side" of the Taiwan Strait, hoping that their children can live a life free of totalitarian rule?

Beijing's victimizing of pro-DPP businesspeople is, paradoxically, good news for Taiwan. It brings into ever sharper relief the nature of China's evolving communist system. Taiwan's economy will bleed less and unemployment rates will drop as reputable enterprises are shut out of the Chinese market. China's excessively political intervention in economic activity will also weaken its currency.

Reputable and competitive enterprises need not succumb to this behavior. Instead, local enterprises can choose to set up factories outside China. There may be no other option for self-respecting businesses wishing not to associate with bankrupt opportunists of Chen Yu-hao's ilk and the people who employ him.

 

China attacks Chi Mei over `ideology'

STRICTLY BUSINESS?: The Chinese Communist Party's mouthpiece vilified the company's chairman for his avowed politics, despite the firm's US$30 million investment in China
BLOOMBERG AND AP , SHANGHAI


Chi Mei Optoelectronics Corp and other companies associated with pro-independence businessmen aren't welcome in China, the Communist Party mouthpiece People's Daily said, signaling China may use its economic clout to try to snuff out "separatist sentiment."

"The mainland very much welcomes the majority of Taiwanese business people who love the motherland," the paper said, adding that their businesses would get preferential treatment.

But China doesn't want investment from Chi Mei Chairman Hsu Wen-long and other Taiwanese businessmen who "use money made on the mainland to support independence," the official mouthpiece People's Daily said in overseas editions. "The mainland has said early on that we do not welcome these sort of Taiwanese business people."

`ANTI-CHINESE BIGOT'

The front-page editorial attacked Hsu, founder of Chi Mei Corp, as a "shameless" anti-Chinese bigot.

The editorial implied that Hsu was using profits from his petrochemical and optoelectronics businesses in China to fund pro-independence politicians -- including President Chen Shui-bian.

Hsu, a known supporter of the Democratic Progressive Party, has frequently criticized China's claims over Taiwan.

Shares in Chi Mei, which is planning its first plant in China, plunged by 6.9 percent -- just below the stock exchange's daily limit -- to NT$67.

Hsu, 76, the sixth-richest man in Taiwan according to Forbes magazine, has been a policy adviser to President Chen Shui-bian .

The People's Daily commentary didn't say what action China would take toward businesspeople perceived to favor independence.

"China is trying to send a message that it has many options: business sanctions, international isolation and military force," said Andrew Yang , secretary-general of the Council of Advanced Policy in Taipei.

"They are squeezing the Taiwan economy to increase the pressure on Chen Shui-bian. Chen hasn't done anything to reassure them that he won't take steps in favor of independence," he said.

Chi Mei Optoelectronics last year approved plans to spend more than US$30 million on its first factory in China, finance manager Eddie Chen said in an interview.

The newspaper didn't say whether China was considering direct retaliation against Chi Mei's businesses in China.

It runs a massive petrochemical complex in the southern city of Zhenjiang.

"We haven't received any official notice from China," Eddie Chen said, referring to the newspaper's criticism.

Hsu founded the Chi Mei Group in 1953 with a plastics factory and later expanded into petrochemicals, electronics, frozen foods and healthcare.

MAJOR INVESTMENTS

The conglomerate employs more than 10,000 people and had sales of more than US$3 billion in 2002, the year Chi Mei Optoelectronics became the first of the group to go public.

Three petrochemical plants and a shipping unit operate in China, the company Web site said.

The People's Daily editorial comes a week after a Chinese government spokesman said businesses supporting Taiwan's independence would "not be welcome to come make money in the mainland."

That was China's most explicit indication so far that it's monitoring Taiwanese investors' political views, and may use them to evaluate their fitness for doing business in China.

Despite a lack of official contact or direct transport links, Taiwanese have invested about US$100 billion in China since 1987. The companies sent US$55.7 billion from China back to Taiwan from 1993 to 2002.

China has avoided overt threats in the past, partly due to a need for Taiwanese investment, but also because Beijing believes Taiwan's growing economic reliance will help speed unification.

The People's Daily also accused Hsu of preferring to use Hoklo, commonly referred to as Taiwanese, or Japanese over the Mandarin dialect widely spoken in China.

It also criticized his friendship with Taiwan's former president, Lee Teng-hui, whom China vilifies for supporting Taiwanese independence.

 

Unification could herald a criminal China's rise

By Paul Lin  

Although President Chen Shui-bian struck a conciliatory note in his inauguration speech, it seems China will not accept this renewed show of goodwill. Most Chinese academics and experts denounced the speech in strong language and China's Taiwan Affairs Office and Ministry of Foreign Affairs have made their position clear, saying Chen's refusal to accept the "one China" principle and his stubborn insistence on independence remains essentially unchanged.

China will not be satisfied until Taiwan gives up and accepts the "one China" principle. But by appearing weak, Taiwan could cause China to become increasingly overbearing. Such is the nature of rogue states, something the US has to recognize as it interacts with China.

China has recently been threatening the people of Hong Kong, and thus, indirectly, also the people of Taiwan, by saying it

will write a unification law. The people of Hong Kong believe China is trying to create this law as a substitute for the withdrawn anti-subversion legislation based on Article 23 of Hong Kong's Basic Law. Even experts close to Beijing believe the unification law is tougher than the legislation that has been withdrawn.

On May 15, Zhu Yucheng, director of the Hong Kong and Macau Research Institute at the State Council Development Research Center, said that some people in Hong Kong were denouncing the central government's direction of local political development. He said they were doing so in the name of democracy, while they are in fact trying to turn Hong Kong into an independent or semi-independent political entity.

During his recent visit to Europe, Chinese Premier Wen Jiabao said that China may write a unification law. Co-opted academics and mouthpieces of officialdom in China, as well as China-friendly overseas media, have used this as an opportunity to threaten Taiwan.

The creation of the law is apparently at the research stage, but suggestions have been made that it apply to Hong Kong, Macau and Taiwan after its promulgation. When a Hong Kong journalist asked whether the law would apply to Hong Kong, the reply was that it would apply to "anyone." The same official also said: "We have received suggestions from our citizens that we should issue arrest warrants for separatists, and even more radical suggestions are included in the bill. This will in the end naturally be given detailed consideration by the legislative authorities."

This shook the gathered journalists, because the official did not explain what those suggestions entailed. However, we can guess at what these radical methods might be if we look at the three Hong Kong radio hosts who have recently broken their contracts because they or their families have received threats, and then look at the criminal elements participating in the Chinese Nationalist Party's (KMT) and the People First Party's (PFP) protests.

These criminals have an alliance in Guangzhou aimed at opposing Taiwanese independence and pursuing the "truth" in the March 19 shooting of Chen and Vice President Annette Lu. It is now calling for

the participation of Taiwanese gangsters in Taiwan and China. Its leader was even involved in the KMT's assassination of Henry Liu in Daly City, California, in 1984. With China issuing arrest warrants extending outside China's borders, the lives and safety of overseas Chinese are also being threatened.

China's socialism has been called a "criminal socialism," referring to its glorification of violence and its innate hooliganism. Wouldn't the employment of criminal gangs to achieve unification turn a unified China into an all-out criminal society?

Paul Lin is a commentator based in New York.

 

 


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