The thawing of relations between Taiwan and China over the past yearhas brought unprecedented economic exchanges between the long-timerivals. But critics say thegovernment is moving too fast in reconciling with Beijing.
ForWallace Kou, chief executive officer of Silicon Motion, warmingrelations between Taiwan and China promise to benefit his company.Silicon Motion has research and manufacturing sites in China.
"Webelieve the China region is the most important region for us to grow,for our future," said Kou. "That's because of the people, thepopulation, its internal need and also exports. Southern China is thelargest consumer electronics manufacturing site. They are moving to the3G [third generation mobile phone technology] era, so it becomes a lotof business opportunity for us to grow."
Despite 60 years ofrivalry, China is Taiwan's biggest trading partner, and the topdestination of Taiwanese foreign investment. This relationship hasdeveloped despite restrictions on both sides of the Taiwan Strait ondealing with the other.
The Nationalist Kuomintang fled toTaiwan and established a separate government here in 1949 after theChinese civil war. Now a Kuomintang-led government is taking a boldmove by proposing to enter into an economic cooperation agreement knownas ECFA to normalize trade and economic ties with China.
TheTaipei government says the agreement will widen the market for Taiwan'sexports. And it says the deal makes the island an attractive tradepartner for other economies, which could help Taiwan climb out of itscurrent recession.
Over the past year, both sides have established direct air, naval and postal links.
Liu Te-Shun is the deputy minister of the Mainland Affairs Council, the agency in-charge of relations with China.
Hesays the agreement hopes to bring more Chinese investments into Taiwan,just as Taiwanese capital poured into the mainland in the past.
OutsideSchive Chi's office bus loads of mainland tourists disembark to seeTaipei 101, one of the world's tallest buildings. Chi is the chairmanof Taiwan's Stock Exchange.
"They [the Chinese] like thisplace, talk the same language and now it's just [a matter of] whetheror not you can convince them that ...this place is a safe place forthem," he said.
He says enhanced relations have raised both local and foreign investor confidence in the stock market.
"That removed one of the very critical concerns from our local investors' point of view," Chi said.
But many Taiwan residents are unconvinced about the agreement. In May, tens of thousands marched in Taipei against it.
Chinaconsiders Taiwan part of its territory, which must be reunited with themainland, by force if necessary. Many, like this demonstrator, fearthat ECFA will be the beginning of an irreversible process towardreunification.
"We in Taiwan will not accept China annexing[swallowing up] us," said Chi. "We want self-determination. We wantto decide our own name [title]. Our authority is our own to decide. We don't want foreign political powers controlling our Taiwan."
Taiwan'stwo previous presidents advocated greater independence from themainland. And opposition parties continue to call policies that fosterthe island's separate identity.
Hsiao Bi-Khim, director of theopposition Democratic Progressive Party's international affairsdepartment, says the government is moving too fast without adequatepublic consultation.
"We feel such an agreement would makeTaiwan too dependent on China and neither does it guarantee that wewould have greater room to engage with other major economies around theworld. On the political side, there are many people in our party thatfeel that too many compromises have been made," said Hsiao.
Liuof the Mainland Affairs Council says the government listens to publicopinion and that recent polls indicate most people see the economicgains of warming ties with Beijing.
The DPP wants all of Taiwanto have a say on the issue and has started a campaign for a referendumon the agreement. As Taiwan nears the 60th anniversary of its splitfrom China, talk about its future remains fraught with much debate.
