Posted on: Tuesday, September 4, 2001

Editorial
China-Taiwan stability: Commerce is a key

Taiwan President Chen Shui-bian has set into motion steps directed at opening direct trade and transport links across the Taiwan Strait.

Some of the steps can be taken unilaterally, such as an increase in the allowed amount of Taiwanese investment directed to the Chinese mainland. Some steps could occur outside of governmental channels, such as agreements between airlines.

But others depend upon Beijing's willingness to reopen cross-Straits negotiations, and Beijing says that won't happen until Chen's government embraces the consensus reached between China and Taiwan in 1992 on the "one China" principle.

Chen, who represents a party that in the past has openly espoused Taiwanese independence from China, so far has stopped short of saying the "one China" words. But he's a lot closer than before, as Taiwan's flagging economy prompts him to encourage recovery through more mainland commerce.

It's encouraging that Taiwan's opposition Kuomin-tang Party has pledged to back the proposed reforms.

Economic ties alone cannot overcome the profound ideological divide that now separates Taiwan and China. Taiwan is a flourishing democracy, and China fears that example.

But the two economies have become increasingly integrated. Since Taiwan began loosening restrictions on trade a decade ago, Taiwanese firms have invested about $60 billion in China. About 40 percent of Taiwan's outward investment goes to the mainland.

As the two economies become increasingly interdependent, the costs of hostilities increase. That's all to the good.

It clearly is in the best interests of the United States and the rest of the world if Taiwan and China resolve their differences through diplomacy, not violence. This is a step in that direction.