The U.S. Can Help Calm Taiwan 's
Political Storm
By RUPERT HAMMOND-CHAMBERS
Updated April 2, 2014 1:39 p.m.
ET
There is increasing concern
these days about America 's
apparently diminishing ability to promote security and liberty overseas, from Syria to Ukraine and beyond. But on Friday U.S. officials will have an unusual opportunity
to advance overseas interests with ease—by strengthening bilateral trade
relations with Taiwan .
At a meeting in Washington , U.S.
and Taiwanese officials could announce their intention to launch negotiations
on a Bilateral Investment Agreement. Crucially, such an agreement would also
position the U.S. to support
Taiwan 's eventual membership
in the 12-nation Trans-Pacific Partnership free-trade accord that is the
centerpiece of Washington 's "pivot"
to Asia . Taiwan's accession to TPP would add a
high-tech export economy to the trade zone while also helping democratic Taiwan
offset its creeping overreliance on trade with China.
Back in Taiwan this week, President Ma Ying-jeou is
facing unprecedented street protests against ratification of a trade agreement
he signed last year with China .
The protests represent a critical juncture in Taiwan 's
domestic debate on relations with China . Unless Taipei
resolves the dispute soon, tensions across the Taiwan Strait could heighten
dramatically—with serious implications not just for Taiwan
and China but for the U.S. , which for
decades has guaranteed stability across the Strait.
President Ma has pushed an
ambitious set of initiatives to normalize China-Taiwan trade and cultural
relations since 2009. Taiwan
has seen soaring numbers of Chinese tourists, Taiwanese companies increasingly
use China as their primary
platform for global production, and China 's share of Taiwanese exports
is now greater than 40%. Thanks to this massive commercial relationship,
cross-Strait tensions have dropped to a historic low.
A cargo crane piles up
containers before they are placed on a boat at Taiwan 's
northern Taipei Port which lies south of the Tamshui River . Agence France-Presse/Getty
Images
Mr. Ma sought economic
liberalization with China so
that he could then pursue liberalization with Taiwan 's other principal trading
partners. It had to be China
first, and then everyone else, because Beijing
is unlikely ever to acquiesce to Taiwan
engaging with other countries without first considering China 's
interests.
The challenge was ensuring that
the China-first strategy not result in domestic angst over stepping too far
into China 's
sphere of influence. Regrettably, that angst has materialized. While trade with
China has boomed, Taiwan 's ties
with other existing and potential trade partners have expanded only marginally.
This has left Mr. Ma's China
policy vulnerable to major domestic criticism.
With the current street
protests—including a student-led occupation of the legislature—there is a risk
that Taiwan 's debate over
relations with China
will become radicalized. Mr. Ma's ability to push new China initiatives would then disappear, as would
his viability as a partner for China .
This is where these cross-Strait trade issues intersect with power politics in Beijing and Washington .
From his election in 2008, Beijing rightly viewed
Mr. Ma as best positioned to move cross-Strait relations in a China-favorable
direction, allowing for economic and cultural engagement that would build
momentum to deal with thornier issues surrounding sovereignty. Unlike the
majority of people in Taiwan —who
seek economic opportunity and are content with their self-governing status quo—China pursues
rapprochement to advance the cause of unification. Beijing
rejects the status quo and is committed to unifying with Taiwan through
negotiation or force.
If China
concludes that Mr. Ma is no longer able to advance cross-Strait relations,
tensions with Taiwan
could spike quickly. China
will likely wait and assess the situation after Taiwan 's
next presidential election in 2016, but whether Mr. Ma's Kuomintang wins or
loses, Taiwan 's next
president will have significantly less leeway in dealing with China .
But the consequences of
continued inaction could be dire, with the Taiwan Strait
again becoming the main flashpoint in U.S.-China relations.
By publicly declaring its
backing for Taiwan's bilateral and multilateral economic ambitions—including a
bilateral investment agreement with Washington and a path to participation in
TPP—the U.S. would lend invaluable support to peace and stability cross-Strait
relations. The U.S. would
help ensure that Taiwan 's
domestic debate on China
policy takes place not just in the shadow of a rising China , but amid expanding Taiwan ties
with trade partners around the globe.
Mr. Hammond Chambers is
president of the U.S.-Taiwan Business Council and a managing director of
BowerGroupAsia
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