Chinese Deputy Prime Minister Qian Qichen (
"Anything can be discussed," Qian told the daily in Beijing when asked if China would be willing to accept a loose confederation with Taiwan.
He said Beijing has adopted a "pragmatic and more inclusive" version of its long-standing "one China" policy, which up to now considered Taiwan a breakaway province.
Qian also warned the incoming US administration of President-elect George W. Bush that if it approves the sale of advanced AEGIS radars to Taiwan, it would harm bilateral relations.
However, he also said that "China and the United States have no need to begin a war against each other," over Taiwan.
On Beijing's "one China" policy, Qian said China has modified it over time.
He admitted Taiwanese leaders "were trapped" when China considered Taiwan a renegade province of communist China, meaning Beijing's government was the only legal government.
"In order to ease their doubts," Qian said in the interview, "we said `one China' not only includes the mainland, but also Taiwan.
"We think of this China as an integral whole which can't be separated in sovereignty or territory. This is the true meaning of `one China.'"
"And they had another doubt. ... They think that Taiwan being part of Chinese territory means Taiwan and China are not equal ... To ease this doubt, we said the mainland and Taiwan belong to the same `one China.' At least it shows some kind of equality. I think it can help ease their doubt."
However, Qian also recognized that China's other formulation for Taiwan of "one country, two systems" faces opposition and resentment from people in Taiwan, who do not want to be compared to former colonies Hong Kong and Macao.
"There is much room [for negotiations] on this problem," Qian told the daily.
Bush foreign policy advisers did not comment on Qian remarks but Asia specialists said his comments were aimed at the incoming administration.
"They are sending signals that they are prepared to work with the administration and not make unreasonable demands," said Douglas Paal, president of Asia Pacific Policy Center and a member of the National Security Council under former president George Bush, the current president-elect's father.
Rather than acknowledge a policy change regarding Taiwan, Qian hinted at a semantic view of the issue.
"Our policy of `one China' has never changed, but to make it more accommodating, easier for them to understand, we made a clearer explanation."
Another Chinese official involved in Taiwan policy told the daily that China had significantly softened the policy, and no longer viewed Taiwan as a renegade province.
"Once we said we would liberate Taiwan," said the official who asked not to be identified, "then we said Taiwan was just a province of China, now we are saying Taiwan can be our equal.
"For the mainland to make these kinds of adjustments in policy is not an easy thing."
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