Foreign Policy
August 12, 2010
Posted By Ian Bremmer
By Nicholas Consonery
Last week, in a major policy shift, Chinese officials gave Taiwanese President Ma Ying-jeou and his ruling Kuomintang (KMT) party a big victory by signaling that China will not block Taiwan’s trade negotiations with Singapore. In the past, Beijing has used heavy diplomatic pressure to block all but five of the island’s potential bilateral trade agreements as part of a long-term campaign to limit Taiwan’s global recognition.
What’s more, the Ma administration appears convinced that Beijing will allow them to pursue trade agreements with other Southeast Asian governments in the months and years ahead. Malaysia, Thailand and the Philippines are the likeliest partners. Officials in Taipei also announced last week that they’re pursuing an investment agreement with Tokyo that they hope will produce a trade agreement down the road. A higher level of economic integration with the broader Asian economy will encourage domestic restructuring in Taiwan and will boost the island’s exports — and therefore its economic strength. And all with Beijing’s blessing.
What’s going on here? more …
