Country Report Taiwan May 2011

Outlook for 2011-15: International relations

Although the warming of relations with China and the signing of the far-reaching ECFA represent significant achievements for Mr Ma, his diplomatic approach to China has always had two strands. One has been to improve relations with the Chinese government and to conclude beneficial trade and transport agreements with the mainland, while the other has been to win China's acquiescence to an increase in trade diplomacy by Taiwan with other countries. Mr Ma has argued that China is less likely to object to Taiwan's signing of bilateral FTAs in the wake of the ECFA, and that other countries will feel emboldened to work towards such deals with the island now that China has itself signed an agreement with it. Taiwan's government is thus currently pursuing a host of FTAs with Asian nations, as well as with the EU and the US. The US is supportive of warming ties between Taiwan and China, as it favours the preservation of the status quo in cross-Strait relations. It will continue to try to deter attempts by China to intimidate Taiwan through military means. It will also continue to sell advanced weaponry to Taiwan, despite objections from China. However, this issue will remain controversial.

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