China and Taiwan

Both rivals, Peoples Republic of China (PRC) on the mainland and Chinese Republic on the island declared, that they are legitimate representatives of the Chinese nation.

During years, PRC tried several times to defeat Taiwan. KMT and the United States signed a mutual-defense treaty in 1954, by which the United States agreed conditionally to take punitive action against the Chinese mainland if the Communist regime attacked Taiwan.

In the early 1970s Taiwan’s international situation changed radically. The decision by the United States government to seek contact with mainland China led to Taiwan’s separation from the United Nations in 1971, and China’s seat was given to the Communist government in Beijing.

In 1972 United States President Richard Nixon visited Beijing and the United States opened a consulate in mainland China. Other nations transferred their diplomatic recognition from Taiwan to the mainland Communist government.

Then, in 1979, the United States formalized relations with mainland China and ended formal diplomatic ties to Taiwan, although trade relations and informal communications between Taiwan and the United States continued.

By 1981 relatively few nations maintained formal diplomatic relations with Taiwan, but the island’s international trade suffered little damage.

In 1978, China drew out a new constitution and one article in the constitution included, that Taiwan should be rescued and connected back to the mainland China.

In September 1981, PRC promised to let the capitalistic system into Taiwan under one condition, that Taiwan agrees with deference to mainland China. Taiwan refused this condition.

In the late 1970s and the 1980s Taiwan’s economy continued to expand. Trade contacts with Western Europe increased, and the government rejected offers of reconciliation that came from Beijing.

In the 1987, Taiwan’s government agreed, that it’s citizens may visit their relatives in mainland China, but there were still restrictions on tourists’ and business visits.

War status between PRC and Taiwan was abolished by the edict of president Lee Teng-hui in 1991.

In April 1993 representatives from Taiwan and China met in Singapore to discuss the relationship between China and Taiwan and establish a schedule for subsequent meetings between the two governments. The Singapore meeting was the first high-level contact between China and Taiwan since 1949.

Relations got worse again in the 1995, when Taiwan’s president Lee Teng-hui visited the US and prime minister Lien Chan visited the Czech Republic (where he had private talks with prime minister Klaus and president Havel), Austria, Hungary and Germany. Mainland China protested against these visits.

Even if the political situation got worse, economic relations did not suffer. Taiwan’s investments increased from the January through the May 1995 by 35 percent and the international trade via Hong Kong increased by 40 percent to $8.7 billion dollars.

In July 1997, Taiwan’s parliament issued the law, which enabled distinct extension in economical relations between the island and the mainland.

In April 2000, president’s elections took place in Taiwan. It was the first time when the president was elected from the Democratic Party. Before the elections, China threatened with army attack in case of Democratic Party victory, but nothing like this happened.