Opinion | It’s up to Beijing to act as a loving partner in cross-strait relations

Cary Huang says China’s rising clout cannot be ignored as both sides try to manage the tensions that come with Tsai Ing-wen’s presidency in Taiwan

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Taiwanese President Tsai Ing-wen is sworn in as the Democratic Progressive Party's chairwoman in Taipei. Photo: Reuters

Published: 2:02pm, 1 Jun 2016Updated: 2:02pm, 1 Jun 2016

The inauguration of Tsai Ing-wen as Taiwan’s new president signalled the end of eight years of stable ties across the Taiwan Strait. It also represents a failure of Beijing’s Taiwan policy despite the recent historic summit between Xi Jinping ( 習近平 ) and Ma Ying-jeou.

Analysts see Tsai’s comprehensive victory (by a margin of 25 percentage points) over her Kuomintang competitor as reflecting a wish by most Taiwanese to keep a distance from China.

Why it’s in Beijing’s best interests to keep cross-strait relations on an even keel

Tsai ran on the platform of keeping the status quo but not accepting Beijing’s cherished “One China” principle and not recognising the 1992 consensus. In reaction, Beijing has threatened to suspend all official communication with Taipei if Tsai refuses to compromise. Compared with 16 years ago – when Tsai’s Democratic Progressive Party colleague Chen Shui-bian took office – the mainland has much stronger leverage today to intimidate the Taiwanese into accepting its demands.

China’s economic, military and diplomatic power has grown exponentially since 2000. Its defence budget has risen tenfold to reach US$147 billion this year, making it the second largest in the world, behind the United States. Its economic and diplomatic clout has also grown just as quickly.

A shopping district in Taipei. Taiwan’s economy is now heavily dependent on trade and investments with China. Photo: Reuters

Plenty of economic challenges ahead for Taiwan’s new president

On the other hand, Taiwan has become more vulnerable to the mainland menace. The island’s economy is now heavily dependent on its 40 per cent of exports to China, and about half of its tourism earnings come from mainland visitors. Tsai must undertake the difficult task of achieving growth while also maintaining a certain distance from China.

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.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Cary Huang says China’s rising clout cannot be ignored as both sides try to manage the tensions that come with Tsai Ing-wen’s presidency in Taiwan

Why it’s in Beijing’s best interests to keep cross-strait relations on an even keel

Plenty of economic challenges ahead for Taiwan’s new president

Cary Huang says China’s rising clout cannot be ignored as both sides try to manage the tensions that come with Tsai Ing-wen’s presidency in Taiwan