The Lima Summit will deal some of the world's most pressing economic issues, including the financial crisis, food and energy security, climate change, and cooperation among members to deepen free trade in the face of rising protectionism.

For Taiwan, the Lima summit marks a milestone in the evolving cross-strait relations. It also promises economic and political opportunities for both Taiwan and the mainland. Lien Chan, a former vice president of the Republic of China and honorary chairman of the ruling Kuomintang, is representing President Ma Ying-jeou to the meeting. Never before since 1993, when former U.S. President Bill Clinton hosted the first leaders' meeting in Seattle, has Taiwan been able to send such a high-caliber envoy to the meeting.

Taiwan joined APEC in 1991, two years after the founding of the regional group, under the name Chinese Taipei as an economic entity. But the summit meeting has been out of bounds to Taiwan's top leaders due to the opposition from Beijing for political reasons. In the past, Taiwan's representatives to the summit were mostly industrial or civic leaders, like Stan Shih of the Acer Group and Morris Chang of Taiwan Semiconductor Manufacturing Co.

The fact that Lien Chan is acceptable to Beijing symbolizes a cross-strait detente which he helped usher in. In 2005, Lien, then chairman of the KMT who lost the 2004 presidential election to Chen Shui-bian under suspicious circumstances, made a "journey of peace" to Beijing as the guest of his Chinese communist counterpart Hu Jintao. The historic Lien-Hu meet broke the ice and started a thaw. Ma Ying-jeou's triumph in the March election, largely on a platform of engagement with Beijing instead of confrontation, has accelerated the thaw, as manifested in the resumption of dialogue and the first visit to Taiwan early this month by China's envoy Chen Yunlin of the Association for Relations Across the Taiwan Strait to sign four economic accords with his counterpart P. K. Chiang of the Strait Exchange Foundation.Lien's trailblazing trip to Beijing has built a platform for meetings and exchanges between officials of both sides on party-to-party and unofficial basis. Vice President-elect Vincent Siew's meeting with Hu in Boao in April, KMT Chairman's visit to Beijing in May, and Lien Chan's meeting with Hu during the Olympics speak volumes of the cross-strait rapport. But the Lima meeting between Lien and Hu bears special significance. First, it is not on a party-to-party basis. It will take place under international limelight. Though Lien is attending the meeting in an unofficial capacity, his impressive resume as a former vice president and premier is not lost on many who are keenly interested in cross-strait relations.

Symbolism matters. It is interesting to watch the interactions between Lien and Hu, who have forged close personal relationship over the years. There is pressure on both, who are walking a political tight rope. For Lien, his challenge is to let Taiwan's voice calling for more international wriggling space be heard loud and clear. For Hu, he will have to act tactfully to appear sensible and reasonable to Taiwan's aspirations, yet maintaining the one-China principle. Neither Lien nor Hu can afford to stumble.

It requires great wisdom for both of them to seize the opportunity to advance cross-strait relations which are so vital to the interests of both. Taiwan's economic future depends heavily on mainland China, the largest source of the island's trade surplus. This year, Taiwan's economy could tumble to a growth rate of 1.87 per cent, the lowest in seven years, according to official estimates. Closer economic ties with the mainland, a locomotive for global economy, are the best way for Taiwan to weather the economic downturn. For Beijing, peace and stability across the Strait is vital to its continued economic growth and its pursuit of a "harmonious society." There is common ground for seeking closer and better ties despite ideological differences. A win-win situation is possible and worth pursuing. Lima is a touchstone.