Roberto Abraham Scaruffi

Sunday, 16 May 2010

Weekly Report from Taiwan Security Research (May 16, 2010)
For full text, click on the title or visit the TSR web page at taiwansecurity.org

Cross-Strait Issues
Interview: Tsai Says No Urgency for Trade Deal By Ralph Jennings and Jonathan Standing (Reuters, May 11, 2010) The DPP would seek a trade deal with Beijing under international rules if it returns to power, seeking safeguards for Taiwan that it says are missing in the pact the KMT government plans to sign next month.

(Taipei Times, May 12, 2010) While Reuters quoted the DPP chief as saying the party had organized a group to open talks with China, the DPP said Tsai Ing-wen had not addressed that issue.


(China Post, May 15, 2010) Democratic Progressive Party chairwoman Tsai Ing-wen recently reiterated the party's position that it will not rule out holding talks with China, as long as no political preconditions are set.


(CNA, May 15, 2010) DPP Chairwoman Tsai Ing-wen advocated what she called a "pragmatic China policy" based on the principles of independent sovereignty for Taiwan and peaceful engagement with China.

(New York Times, May 13, 2010) Taiwan’s president, Ma Ying-jeou, hopes to use the Taiwan-China trade deal to fully normalize economic relations with Beijing while expanding the island’s access to other markets.

(China Leadership Monitor, Hoover Institution, Spring 2010) The transpacific controversy between the U.S. and China seemed to have no impact on cross-Strait relations, and, although not all was smooth sailing, Taipei and Beijing began to close in on signing an Economic Cooperation Framework Agreement (ECFA) by May or June.
(China Post, May 11, 2010) Lawmakers from both parties clashed again on the hot button topic concerning the opening of Taiwan's schools and examination to residents from mainland China.


(AP, May 12, 2010) Orders worth some US$2 billion for high-tech products and farm produce. Offers of tax incentives for investment. A promise to send 120,000 tourists to Taiwan every year. Those were some of the deals signed off by a 2,000-strong delegation from China's Fujian Province.

U.S. Policy and U.S.-China Engagement

(Taipei Times, May 10, 2010) A new resolution formally calling on US President Barack Obama to move toward a free-trade agreement (FTA) with Taiwan has been introduced into the US Congress.


(Taipei Times, May 16, 2010) US alliances in Asia do have a real geostrategic objective — managing the rise of China. All of the other things they do with their allies, while important in their own right, are ultimately secondary.


(Taipei Times, May 14, 2010) Stephen Hadley said it was his hope that a new “candid dialogue” between the US and China over Taiwan would over time convince Beijing that the solution to the problem of US arms sales to Taiwan was “in China’s own hands.”


(Reuters, May 14, 2010) U.S. and Chinese Officials agreed after two days of talks on human rights to start exchanges of legal experts and hold another rights dialogue in China next year.


Military Balance and Arms Sales

(CNA, May 16, 2010) In a joint letter sent to U.S. President Barack Obama Friday, 136 members of the House of Representatives called on the U.S. administration to seriously deal with Taiwan's self-defense by selling it F-16 C/D fighter jets.


(Defense News, May 14, 2010) On May 13, Air Chief Ger Hsi-hsiung told members of the legislature that F-16s would meet Taiwan's immediate requirements, but the F-16 lacks the stealth and short-takeoff and vertical-landing capabilities that will be needed in the future.
  
Taiwan's Domestic Issues and Foreign Relations

(Wall Street Journal, May 13, 2010) Analysts said the changes unlikely mark a significant policy shift in Taipei, which has been forging closer economic ties with China since the Kuomintang party came to power in 2008.

Strengthening People-to-People Relations: The Cornerstone of Taiwan-U.S. Ties By Da-jung Li (The Brookings Institution, May 2010) At the current stage, joining the U.S. Visa Waiver Program, signing a bilateral extradition agreement, renewing the TIFA talks, resuming visits by U.S. cabinet-level officials, and promoting Taiwan culture in the U.S. are high on Taipei’s agenda.

China's Rise and Domestic Issues

(China Post, May 13, 2010) Leaders of China's communist party (CCP) are determined to keep their grip on power and will never allow a leader who is too liberal or progressive to assume power, said Dr. Willy Lam.
(Wall Street Journal, May 11, 2010) Chinese economic data out Tuesday showed that inflation picked up in April and that property prices continue to rise at record speed, while new lending also increased.

(New York Times, May 15, 2010) Prime Minister Wen Jiabao of China said that the Chinese government would examine the deeper social problems that might have led to the recent string of deadly attacks on schoolchildren.

Renminbi Revaluation Won’t Trigger a Shopping Spree By Zhiwu Chen (YaleGlobal, May 12, 2010) Many economists and policy analysts maintain that resolving huge trade imbalances is easy – the Chinese government should just let the renminbi appreciate. But that quick fix won’t do much, contends Zhiwu Chen.
Posted by Roberto Abraham Scaruffi at 19:32