It must have been a bad past few weeks for Beijing officials to basically tell the US to get the hell out of the region — but that’s exactly what it did last week during two days of negotiations on maritime safety between Chinese and US officials, when it requested that the US phase out and eventually end maritime surveillance in the region.
The meeting, called in response to a series of near-accidents off the Chinese coast earlier this year, came at a time when China was least expected to be flexing its muscles before Washington. After all, with US President Barack Obama still new in office and his China policy just shaping up, Beijing has everything to gain from treading carefully, especially when Washington is courting its help in resolving the global financial crisis.
Some could argue that this is an indication of Beijing’s growing self-assurance, or simply the result of rising Chinese nationalism under President Hu Jintao (胡錦濤). This is unlikely, however, because China isn’t sure-footed enough yet to order the US around, and many are still undecided as to whether the US and China are strategic partners or strategic competitors. It is surprising that Beijing officials would risk undermining the budding relationship with a US administration that is widely seen as more amenable to China’s objectives than its predecessor.
Beijing’s hardening stance is the result of something else altogether: its sense of weakness on a core issue — Taiwan. Starting with the administration of US president Bill Clinton, Beijing has realized that the road to unification with Taiwan would have to pass through Washington, especially when cross-strait dialogue under then-president Chen Shui-bian (陳水扁) of the Democratic Progressive Party was at an all-time low. From late 2001 onwards, China’s charm offensive in the US was effective and managed to isolate Taiwan. It soon became evident that Taiwan’s isolation was contingent on warm Sino-US relations.
What derailed this carefully tuned minuet wasn’t careless policy or growing friction; rather, it was the immediate environment — over which China has no control — that changed and is now forcing a policy realignment. First came Typhoon Morakot, which devastated southern Taiwan earlier this month. Soon afterwards, US military aircraft, helicopters and officers were for the first time in many years officially setting foot on Taiwanese soil, which had an important symbolic impact on Beijing’s perceptions. To add insult to injury, the Tibetan spiritual leader, the Dalai Lama, has been invited to visit Taiwan, something that would have been inconceivable prior to Morakot.
Another factor is internal conflict in Myanmar pitting government forces against a faction of the Kokang militia, which has forced between 10,000 and 30,000 refugees to cross over from Shan State into China’s Yunnan Province in the last few weeks. Beijing has long dreaded the impact of large refugee inflows from neighboring countries on its internal stability, as well as the potential for those conflicts to result in the deployment of international forces within the region.
That Morakot and conflict in Myanmar, in addition to unrest in Xinjiang, would occur almost simultaneously has made Beijing less confident of its ability to determine the future course of the region. It has also made it more aware that despite its well-crafted — and so far successful — policy of ensuring stability along its border and in the region, some variables remain out of its control. As all these developments have invited — or risk inviting — intervention by outside forces, Beijing will want to ensure that it is the sole regional power upon which smaller players can rely. One way to achieve this, of course, will be to pressure the US to leave.
When it became clear that the world was entering a new era with a radical change in the US’ global stance in US President Donald Trump’s second term, many in Taiwan were concerned about what this meant for the nation’s defense against China. Instability and disruption are dangerous. Chaos introduces unknowns. There was a sense that the Chinese Nationalist Party (KMT) might have a point with its tendency not to trust the US. The world order is certainly changing, but concerns about the implications for Taiwan of this disruption left many blind to how the same forces might also weaken
As the new year dawns, Taiwan faces a range of external uncertainties that could impact the safety and prosperity of its people and reverberate in its politics. Here are a few key questions that could spill over into Taiwan in the year ahead. WILL THE AI BUBBLE POP? The global AI boom supported Taiwan’s significant economic expansion in 2025. Taiwan’s economy grew over 7 percent and set records for exports, imports, and trade surplus. There is a brewing debate among investors about whether the AI boom will carry forward into 2026. Skeptics warn that AI-led global equity markets are overvalued and overleveraged
Japanese Prime Minister Sanae Takaichi on Monday announced that she would dissolve parliament on Friday. Although the snap election on Feb. 8 might appear to be a domestic affair, it would have real implications for Taiwan and regional security. Whether the Takaichi-led coalition can advance a stronger security policy lies in not just gaining enough seats in parliament to pass legislation, but also in a public mandate to push forward reforms to upgrade the Japanese military. As one of Taiwan’s closest neighbors, a boost in Japan’s defense capabilities would serve as a strong deterrent to China in acting unilaterally in the
Taiwan last week finally reached a trade agreement with the US, reducing tariffs on Taiwanese goods to 15 percent, without stacking them on existing levies, from the 20 percent rate announced by US President Donald Trump’s administration in August last year. Taiwan also became the first country to secure most-favored-nation treatment for semiconductor and related suppliers under Section 232 of the US Trade Expansion Act. In return, Taiwanese chipmakers, electronics manufacturing service providers and other technology companies would invest US$250 billion in the US, while the government would provide credit guarantees of up to US$250 billion to support Taiwanese firms