China

Relations with Taiwan

A major unresolved issue in the region has been the status of Taiwan. Since 1949 the regimes on both the mainland and Taiwan have agreed that Taiwan is a province of China—the principal difference being that each has asserted it is the legitimate government of the country. Tensions were especially high between the two entities in the first decades after the split, marked by periodic artillery duels between batteries on the Taiwan-controlled islands of Matsu and Qemoy, just off the coast of Fujian province, and those opposite them on the mainland. The ROC’s claim of legitimacy was dealt a serious blow after 1970 with its loss of UN representation and diplomatic recognition by most of the world’s countries. Still, Taiwan remained viable and emerged as a global economic powerhouse, its security guaranteed by a commitment from the United States and backed by U.S. military presence in the region. The continued American involvement in Taiwan affairs has at times been a source of friction in U.S.-China relations.

Through all this, economic ties improved considerably between the mainland and Taiwan. Taiwan has become one of China’s major trading partners, Taiwan-based businesses have invested heavily on the mainland, and large numbers of people from the island have come to live and work on the mainland. Beijing has continued to press for reintegrating Taiwan as a province of China under mainland administration. However, there has been a sustained movement on Taiwan advocating that the island become an independent sovereign state and not continue to be considered a part of China. Tensions escalated after the pro-independence Chen Shui-bian was elected president of the ROC in 2000. Nonetheless, discussions continued between the two sides, and in 2005 high-ranking Nationalist Party (KMT) officials traveled to the mainland, the first such visits since 1949.

Tensions between China and Taiwan eased significantly after the Nationalists regained control of both Taiwan’s legislature and presidency in 2008. Talks, often at a high level, continued and increased between the two sides on both economic and diplomatic issues. A notable accomplishment of these discussions was a trade agreement, signed in 2010, that would gradually reduce or eliminate tariffs on a large number of goods and commodities exported from one side to the other. The Editors of Encyclopaedia Britannica