E-Notes

A Conversation with Chen Shui-bian, The President of the Republic of China on Taiwan

January 22, 2003

Chen Shui-bian is president of the Republic of China on Taiwan. Chairman of the Democratic Progressive Party (DPP), his election in May 2000 was a milestone in Taiwanese politics; he became the first president of the Republic of China not from the former ruling party, the Kuomintang. In the summer of 2002, Chen’s comments about Taiwan and China ignited considerable controversy in the long-running conflict over the island’s status. FPRI president Harvey Sicherman put the following questions to Mr. Chen in the hopes of clarifying his positions on this and other topics. Taken together, the questions and answers offer a comprehensive view of President Chen's ideas on cross-Strait relations, the connection with the United States, and Taiwan’s future.

Q. How would you characterize the present state of Taiwan-China relations?

A. Despite frequent economic, trade, and cultural exchanges, as well as the large number of people traveling between the two sides, considerable differences and some prejudice still exist between Taiwan and China. The People’s Republic of China (PRC) continues to be Taiwan’s greatest political oppressor and the most serious military threat to our national security. China’s primary goal is to “marginalize” and “downgrade” Taiwan to the status of a local government by isolating us politically while trying to involve us economically. At the same time, Beijing is stonewalling our attempts to resume talks and normalize Taiwan-China relations. Even now, despite the fact that both sides are members of the World Trade Organization (WTO) and have the framework for discussing important economic and trade issues, the lack of communication between the two has continued. This is not a normal approach to developing Taiwan-China relations.

Q. How do you define Taiwan politically?

A. The Republic of China (ROC) is a sovereign state. This is the clear and obvious status of our country. The ROC effectively exercised jurisdiction over the islands of Taiwan, Penghu, Kinmen, and Matsu—a fact no one can deny.

Q. By publicly asserting that Taiwan is a “separate country,” “sovereign,” and “independent,” don’t you risk provoking Beijing into retaliating with force?

A. If I were to deny that the ROC is a sovereign state, I would no longer be qualified to serve as president. Neither the ROC nor the PRC is subordinate to the other. I want to make it clear that Taiwan is not a part of, a local government of, or a province of any country. This is a fact of history. We want to emphasize to the international community that, as a sovereign state, the ROC cannot be downgraded, treated as a local government, or marginalized by anyone.

Since my inauguration, I have made many important policy announcements concerning China to demonstrate our goodwill. We have never given up any opportunity or effort that might improve Taiwan-China relations. Regrettably, China has yet to offer a positive response. On the contrary, it has continued its attempts to suppress Taiwan internationally and underscores through military exercises its refusal to renounce the use of force against Taiwan.

Therefore, we look forward to and call on Beijing to face the reality of Taiwan-China relations. We hope that they will resume the dialogue with us as soon as possible and strengthen exchanges on the basis of parity. In this way we can build mutual faith and confidence, set the stage for higher level talks, and allow both sides to rise above the current disputes and deadlock.

Q. How would you characterize the environment in which Taiwan finds itself today?

A. Since I took office on May 20, 2000, Taiwan society has faced many new challenges of the twenty-first century. Dealing with the changing economic and political situation in Taiwan is the new government’s mission and a heavy responsibility indeed. However, this is also an opportunity for the new government to steer Taiwan towards a new summit. Over the past two years, the new government has worked with determination to carry out the duties of government in the spirit of service. We have already achieved many remarkable results. While this transformation of Taiwan has inevitably resulted in a degree of tumult, the government succeeded in moving forward on stabilizing Taiwan-China relations, eradicating long-standing malfeasance, and establishing a more promising future for the island. Taiwan is at the center of a radical historical evolution, and we are faced with many questions. How do we find a proper stance following the first peaceful transfer of power? How do we begin bold and resolute reforms to strengthen democracy in Taiwan? What is the best way to link Taiwan with the global economic and political system? And what can be done to maintain peace and stability in the Taiwan Strait and the Asia-Pacific region? Such questions can no longer remain issues for political campaigning. They must be resolved through resolute action.

Taiwan is a diverse and democratic society, and the most stringent criteria have been applied in examining the every move of the new government. This phenomenon reflects the people’s high expectations of the new government following the change of the ruling party. However, in some areas we have seen a divergence of opinions and wasted efforts. Thus, it is our hope that a mechanism of mutual trust can be established to improve the relationship between the ruling and opposition parties. Only when Taiwan’s political situation is stabilized can the government focus all of its energies on reviving the economy. I personally believe that if we can reduce the level of political confrontation, Taiwan will enjoy a brighter, more balanced future.

Q. What are the most urgent challenges facing Taiwan, and how do you propose to meet them?

A. Rejuvenating the economy will be the government’s primary focus for the next year and a half. For the past two years, relevant government agencies have actively taken a series of measures to stimulate the economy, including efforts to improve the investment environment, assist in the transformation of industries, and develop a knowledge-based economy.

Faced with a sluggish economy, the Executive Yuan has come up with the Challenge 2008 comprehensive six-year national development plan. This is the new administration’s blueprint for improving the economy, humanities, and life in Taiwan. The plan calls for increasing the total output of the semiconductor and monitor industries above NT$1 trillion (US$28.77 billion) over the next few years. It also aims to expand national R&D expenditures in science and technology to three percent of GDP within six years.

The entire world is in the midst of an economic slowdown, and Taiwan is not immune to its effects. However, we must not allow ourselves to be discouraged by temporary setbacks, nor can we afford to let the poor economy dampen our ambition. Instead, we must prepare ourselves for the eventual recovery. Therefore, the government will continue to give priority to Taiwan, to the economy, and to investment. To realize the policy objective of “investing in Taiwan first,” the government will upgrade government efficiency, financial markets, relevant laws, and infrastructure. While we are upgrading industry, we must also take advantage of the opportunity to overhaul of the entire economy.

Q. Is Taiwan Taiwanese or Chinese or both?

A. We have never denied that the people of Taiwan and China share the same blood, culture, and historical background. However, the political reality is that neither Taiwan nor China is subordinate to the other, and Taiwan is not a part of the PRC. Therefore, we can say that Taiwan belongs to Taiwan and the ROC.

Q. Are you seeking to normalize relations with China or to build a wall between the island and the mainland?

A. Since my inauguration as president of the ROC, the government’s mainland policy has been consistent. Our policy is that under the principles of goodwill, active cooperation, and permanent peace, Taiwan and China should undertake exchanges in many areas while respecting the free will and freedom of choice of the people of Taiwan. On this foundation, the government has actively pursued stable and constructive interactive relations with China. Over the past two years, we have promoted a number of friendly policies aimed at opening relations. For example, we undertook a trial of the three mini-links (i.e., direct transportation, postal and trade links between China and the offshore islands of Kinmen and Matsu), allowed China’s media to cover news in Taiwan, and replaced the “no haste, be patient” policy with a more open approach of “proactive liberalization with effective management.” We have tried to change the old defensive, siege mentality and gradually build mutual trust and understanding so that we can pursue the normal, stable development of Taiwan-China relations. However, China has yet to offer a clear, substantive response. Instead, it has continued its suppression of Taiwan’s foreign relations and strengthened its military deployment against Taiwan, all the while refusing to resume a dialogue. Such unfriendly behavior has not only seriously threatened stability in the Taiwan Strait, but also increases the danger of future misunderstanding. This is the principal reason that we have been unable to normalize Taiwan-China relations.

Q. Does serving as president of the ROC concurrently with serving as chairman of the Democratic Progressive Party (DPP) pose any conflict for you?

A. Since becoming chairman of the DPP, I have been looking forward to being able to even more effectively enhance communication and coordination among the Office of the President, the Executive Yuan, and the DPP, and realizing the benefits of government and party working in sync. I also hope to establish an “agenda-oriented” platform for party-to-party communication, thereby facilitating inter-party consensus. In the future, this will strengthen agenda-specific legislative alliances and provide opportunities for cooperation among political parties.

We also hope that the executive and legislative branches can establish a similar confidence-building mechanism to improve relations between the government and opposition parties. Only after the domestic political situation has stabilized can the government begin to concentrate efforts on reviving the economy. Thus, my concurrent roles of ROC president and DPP chairman present no conflict of interest. On the contrary, I believe my dual roles can enhance mutual trust and reconciliation between the ruling and opposition parties, reduce political confrontation, and alleviate ethnic tensions. This will help bring balance to Taiwan’s future.

Q. What is your vision for Taiwan’s future?

A. Faced with the challenges of globalization and the magnet effect of China’s economy, Taiwan needs to implement reform to escape the burden of history. Thus, Challenge 2008 upholds the core values of “respecting people and achieving sustainable development” and “thinking globally, acting locally” as a basic strategy for development. The plan calls for reform in politics, financial administration, and finance to eliminate long-standing malfeasance. It also calls for investment in the cultivation of talent, R&D and innovation, international logistics, and a high-quality living environment in order to promote ten specific development programs: cultivating talent for the e-generation; developing the cultural creativity industry; developing an international base for research, development, and innovation; increasing value-added production; increasing tourism; developing a digital Taiwan; developing Taiwan as an operations headquarters; improving the transportation infrastructure; conserving water resources and the ecology; and constructing new hometown communities. The government and private sector will invest an estimated NT$2.65 trillion (US$76.24 billion) in the plan.

To progressively implement Challenge 2008 over the next six years, we have set the following goals for the concerted efforts of the people and government: increasing the number of products and technologies that meet the world’s highest standards to at least 15; doubling the number of foreign visitors; raising R&D expenditures to 3 percent of the GDP; reducing the average unemployment rate to less than 4 percent; lifting the average economic growth rate to over 5 percent; boosting the number of broadband Internet users to over 6 million; and creating approximately 700,000 jobs.

Q. What is your interim strategy for Taiwan’s survival?

A. The new middle road is the proper path for Taiwan. During my 2000 presidential election campaign, I boldly and accurately proposed this path to Taiwan’s 23 million citizens. My ultimate victory in the election is closely tied to this proposal.

Every country has its own unique conditions. Taiwan does not have confrontation between the Left and the Right, but we do have issues that other countries do not, such as controversy over unification and independence, ethnic identification, and provincial origin. Some issues do not fit into a simple dichotomy. We can try to step beyond our ideological differences and seek compromise. Ethnic and provincial distinctions, unification versus independence, the market economy versus social welfare, and individual versus collective interests are issues that can be dealt with through the new middle road.

Q. Do you advocate or oppose economic and political integration with China?

A. In my December 31, 2000, address, “Bridging the New Century,” I appealed to the leaders in China to rise above the current disputes and deadlock and take cross-strait economic, trade, and cultural integration as a starting point for gradually building mutual trust. We can then jointly seek a new framework for permanent peace and political integration between the two sides.

Taiwan is an open economy. We have never put China out of bounds to the globalization efforts of Taiwanese enterprises. Economic complementarity and cooperation between Taiwan and China is beneficial to both sides. However, we cannot deliberately ignore our political differences or the threat posed by China’s military. Therefore, at the present stage, cross-strait economic exchanges must be explored from a perspective of overall national interests. If China were to cease its political antagonism and military suppression, there would be much more room for the development of economic and even political relations between the two sides.

Q. What are your principal grievances against Beijing?

A. Beijing has continually increased the number of missiles it has deployed against Taiwan and carried out military exercises targeting Taiwan. Not only does this pose a grave threat to the stability of the Taiwan Strait, but also seriously hurts the national interests of the ROC and the welfare of our people. China’s disregard for and revolt against the universal values of human civilization make it one of the greatest threats to democracy, freedom, human rights, and world peace. I once again call on the leadership in Beijing to listen to and respect the true sentiments of Taiwan’s 23 million people when they say: “No to missiles; yes to peace.” China should remove the missiles deployed across the strait against Taiwan, openly renounce the threat of military force, and join us in rational communication. Only then can we create stability in the Taiwan Strait and prosperity for the Asia-Pacific region.

Cross-strait dialogue is a necessary development, and we sincerely hope that the two sides can forgo all preconditions and quickly resume consultations and dialogue. However, we absolutely cannot accept Beijing’s unilateral imposition of its “one China” principle or “one country, two systems” formula. It is regrettable that China insists on this ideology as a precondition and then time and again boycotts the formal resumption of cross-strait consultations.

Q. What urgently needs to be done to stabilize and improve cross-strait relations?

A. The biggest wild card in Taiwan-China relations is the threat posed to Taiwan by China’s military. I believe that if the international community puts pressure on China to remove the missiles aimed at Taiwan, renounce the threat of military force, and resume the cross-strait dialogue, this would not only effectively guarantee peace in the Taiwan Strait, but also enhance the stability and prosperity of the entire region.

Q. What do you expect of the United States?

A. The United States has emphasized on many occasions that cross-strait issues should be resolved through dialogue and peaceful means with the approval of the people of Taiwan. In accordance with the six assurances given to Taiwan in 1982, the United States has upheld its pledge not to take on the role of mediator in cross-strait relations and not to pressure Taiwan into holding talks with China. [Ed. note: The four other assurances were that the United States would not set a date for termination of arms sales to Taiwan, alter the terms of its 1979 Taiwan Relations Act, consult with China in advance before making decisions about U.S. arms sales to Taiwan, or formally recognize Chinese sovereignty over Taiwan.] U.S. presidents have adhered to the commitments to our security set forth in the Taiwan Relations Act. This has been the consistent policy of the United States towards the Taiwan Strait.

Looking at the development of Taiwan-U.S. relations since 2001, we can see that on a variety of important issues Taiwan has won support from top-ranking U.S. leaders. Mutual trust continues to grow, clearly indicating that the Bush administration is handling Taiwan-U.S.-China relations in a fair and balanced manner. The improvement in Taiwan-U.S. relations is mainly rooted in our common belief in the universal values of democracy, freedom, and human rights; our mutual expectations for peace and stability in the Taiwan Strait; and our shared hopes to establish closer economic, trade, and business cooperation. This foundation has enabled Taiwan-U.S. relations to move on to the next level.

Many Bush administration officials in the areas of foreign affairs, national defense, and national security possess deep insight into Taiwan’s current situation and have spoken positively about Taiwan on numerous occasions. Since his inauguration, President Bush has reaffirmed the United States’ commitment under the Taiwan Relations Act to assist in Taiwan’s defense. His words underscore the importance his administration places on security in the Taiwan Strait. In the future, Taiwan will continue to uphold the principles of democracy and human rights, shared economic prosperity, and peace and security in it diplomacy. We will also continue to strengthen Taiwan-U.S. relations. We hope that the United States will continue to play the role of stabilizer, balancer, and facilitator in the Taiwan Strait.

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E-Notes

A Conversation with Chen Shui-bian, The President of the Republic of China on Taiwan

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