There is also the not-so-little kerfuffle over the "unofficial" visit of Vice President Annette Lu (呂秀蓮) to Indonesia a couple of weeks earlier. In the context of China's unending effort to isolate Taiwan, this was a big step for both Taipei and Jakarta. Xinhua, the official Chinese news agency, wants us to think the Lu visit was "an absolute farce," but I assign it a higher status than that.
This might prove to be a score for Taiwan, in fact. Lu's brief ride down to Indonesia followed by a matter of days the decision by CNOOC Ltd (中國海洋石油), China's offshore oil company, to purchase US$13 billion worth of liquefied natural gas from an Australian consortium, with a promise to buy also from the Tangguh offshore fields in eastern Indonesia.
Lu signed no deals and none will come in the immediate future, but one was almost certainly discussed. When it comes to energy supplies, at least, it now looks as though Taiwan and China may manage to compete amicably. Only a few months ago, CNOOC and Taiwan's Chinese Petroleum Corp (中油) signed a joint exploration deal in the Taiwan Strait. As my Bloomberg colleague Adam Majendie puts it, "Politics is important; oil is vital." Southeast Asia is another China card in Taiwan's deck, and it has its appeal in the region. Taiwan has considerably more fixed investment in Indonesia -- US$17 billion at present -- than China does, and it is already a large buyer of Indonesian liquefied natural gas. Worried about the rise of China? Come to us: That seems to be the message.
How heated might this kind of rivalry get? Hard to say now, though I can't see it becoming in any way dangerous. This kind of competition might help provide just the context China and Taiwan need to begin moving back toward talks on direct contacts.
Business is so often politics in Asia, and politics business: Ask any trader in the Taipei market.
Patrick Smith is a former correspondent in Asia. The opinions expressed are his own.
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