China and Taiwan met for the first time formally in 65 years since the country split in 1949. China has never accepted or acknowledged Taiwan as an independent country. According to US intelligence, “The Chinese government keeps around 1,200 missiles pointed at Taiwan” just in case they decide to declare independence. Tensions are high to say the least, and these talks seem to be moving things, if ever so slightly, in the right direction.
There have been talks in the past but China never confirmed these talks as official. They said that they were simply low level officials talking to low level officials. This talk took place between the two highest officials that have ever met since the civil war between the two countries. 80% of Taiwan are strongly against a reunification with China, and it seems like China will accept nothing less. These facts make it difficult to see a happy existence between the two countries, but nonetheless it is nice to see diplomacy where there had previously been none.
Well.. it is true that China and Taiwan have been against each other. However, it is interesting to see that they are beginning to talk. I am not sure what their topics were, but the fact that they had a talk (at least) is significant. I think that this might be a beginning of something. As they talk more and more, they will try to have trades and possibly Economic Partnership Agreements that benefit both of the countries.
Do you know if this talk had any impacts on their economies?
China and Taiwan have had direct air links for some time. That could not happen without the most senior politicians on both sides giving their approval. No, we did not have an attendant photo op of handshaking. Given this history, are there any economic benefits left to be gained from the current public event? I suspect the answer is that there is very little incremental trade or investment coming from this. It may however rob the PLA (People’s Liberation Army) from an excuse to maintain staffing and attendant equipment levels, particularly on expensive coastal real estate. The PLA really does need PM Abe of Japan to have a long tenure, as he facilitates playing the “Japan” card in budgetary battles and positions in the hierarchy of the CCP.