Weapons tensions across strait are highlighting differences

Beijing may censor Google and other information providers, but regarding Taiwan openly threatens war. Amid our commercial fascination with capitalist China, we're wise to remain very aware of Communist China

Yet while U.S. military support of Taiwan causes intense alarm in Beijing, cooperative ties between Beijing and Taipei continue to grow. In early November 2008, the two sides successfully concluded historic negotiations. Respective delegation leaders Chen Yunlin and Chiang Pin-kung were the most senior officials ever to participate in such talks. Four comprehensive agreements were reached, including direct shipping, expansion of weekly passenger flights from 36 to 108, and introduction of cargo flights up to a maximum of 60 per month.

There was also agreement to hold senior talks every six months, with a future phase to focus on financial integration, including opening bank branches across the Taiwan Strait. Over time, this great liberalization of banking will give an enormous boost to already significant investment in China. An ambitious Economic Cooperation Framework Agreement (ECFA) will be the specific focus of the next negotiating round.

This process is a major triumph for Taiwan President Ma Ying-jeou, leader of the Kuomintang Party (KMT) and former Mayor of Taipei. His election to the presidency in March 2008 provided an important fresh opportunity to reduce tensions and increase cooperation with Beijing.

The KMT ticket secured 58.45% of the vote, a landslide. In the same election, voters rejected two referenda to seek readmission to the United Nations. The opposition Democratic Progressive Party is less committed to mainland cooperation. In a 2006 visit to New York, Ma emphasized the 1992 formal agreement with Beijing to accept the concept of 'one China' but differ on specifics. That accord has been fundamental to the fitful but continuing cooperation. Ma's dramatic reaffirmation of the accord while in the financial capital of the U.S. was shrewd politics.

Pragmatism generally has characterized Taiwan's approach to mainland China and the world at large. Following Washington's formal diplomatic recognition of Beijing in 1978, a process begun by President Richard Nixon's 1972 visit, Taipei immediately launched a comprehensive essentially non-confrontational strategic response.

Consular offices around the U.S. were expanded. State government officials, along with members of Congress, were assiduously courted. Arkansas Gov. Bill Clinton was among those who visited Taiwan. Positive Congressional ties became an especially important priority, which clearly paid dividends over the years. Continued U.S. arms aid is one result.

Taiwan has become essential investor for the enormous industrial revolution taking place on the mainland. Commercially successful, generally well-educated overseas Chinese in turn are a vital source of capital for the mainland. Expatriate Chinese also vote in Taiwan elections.

The 2008 agreements are not only inherently important but a useful barometer of relations between China and Taiwan. Since the latest arms shipment was announced, Beijing has delayed talks scheduled for early this year — but has not cancelled them. Ending this now central process would bring enormous complications for both sides. So far, the process of investment, trade and communication across the Taiwan Strait continues.

If Beijing does cancel 2010 talks, that will be a signal of return to Cold War politics — and possibly much worse.

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