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PacNet #33 – China’s Taiwan Policy: Still Listening and Watching

Beijing’s assessment of Taiwan’s economic and political situation has not changed significantly in the past six months. China views the island’s sluggish economy and Chen Shui-bian’s beleaguered political position as working in the Mainland’s favor. Chinese experts are buoyed by increasing economic ties and expanding people-to-people contacts. They are delighted by Taiwan polls that show an increase in support for one country, two systems. Chinese institute researchers on Taiwan affairs are confident that the DPP will not gain a majority of seats in the December Legislative Yuan elections and they forecast that the persisting stalemate between the government and Taiwan’s legislature will thwart Chen Shui-bian’s plans of pursuing an independence agenda.