anonymity, when asked about the motivation for Chen's remarks.
"The market lost NT$50 billion in value in trading on Monday. This is the
price we have to pay for a leader who is as vain as he is responsible," said
the banker.
While theories abound about Chen's motivation, the general consensus is that
the remark was hoped to bolster support among hard-line pro-Taiwanese after
two years of taking a conciliatory approach.
According to a report by Goldman Sachs the remarks could also have been
aimed at gaining leverage in dealing with Beijing and slowing efforts to
establish the direct "three links" - further economic integration with China
- and was probably viewed as a "low risk strategy."
"There could well be negative economic and political fallout in the short
run. The prospects of "three-links" now become more remote, and the chance
of a genuine political reconciliation during Chen's tenure has diminished,
resulting lost opportunity for both sides," said the report.
However, despite the strong words Goldman Sachs doesn't see any risk of
military confrontation on the horizon and predicts that economic activities
across the strait should continue "business as usual."
RSS