The economic deal between China and Taiwan is heralded as “unprecedented”, why?

Relations between China and Taiwan have been strained since the two countries split in 1949. Technically, the two countries remain at war since China fails to accept Taiwanese sovereignty. This round of negotiations comes after a 60-year hiatus. The deal is a step towards normalising trade relations between the two rivals. Direct transport links between the two countries have been restricted since 1970 - the new deal signed between the two powers alter this. Benefits of this deal are purely economic; shipping links will save over $100 million in costs per year. Consisting of 13 agreements on charter flights, cargo routes, trade shipments and postal links marks a remarkable shift in policy by the new government of KMT’s Ma Ying-jeou.

How have the Taiwanese reacted to the shift in policy?

A change in policy could be foreseen since the mid-June talks - the first high level talks following the presidency of nationalist Chen Shui-bian. Newly elected Ma-Ying-yeou came to power with a mandate of strengthening ties with China and attempting to smooth relations. This shift is not appreciated by all facets of society - though welcomed by the middle class this has angered those who harbor fears about China’s aggressive policy towards Taiwan. Further, charges have been issued against Ma alleging that his decision is a breach of Article 104 of the constitution whereby he has signed deal with foreign governments, which could potentially overthrow the government. Local Taiwanese have taken to the streets protesting against Chinese Chen Yunlin’s visit.

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