President Chen Shui-bian (
Chen's comments were part of a speech via videoconference to the Foreign Correspondents' Club of Japan.
He said that "China's rise" would be influenced by many factors, including its huge market and economic appeal, expanding military capabilities, the potential for socioeconomic turmoil, the political center's capacity to control the regions and the question of whether democratization could be introduced in a steady fashion.
When asked about Taipei's economic stance on China, Chen said that Taiwan would not isolate itself from the international community or from the Chinese market.
"Taiwan is not an isolated island. It's part of the world. Trade is important for Taiwan's survival," Chen said.
"But to Taiwan, China is not a normal country. It's a country that is hostile to Taiwan, with the intention of invading and taking over," he said.
Chen said that businesspeople had to keep in mind that China is neither a free and open economy nor a country under the rule of law.
"We must strengthen our investment in [our own country] and at the same time maintain a global perspective. The China market is one link in global market. It's not the only link," he said.
Chen said that economic policies relating to China in the past adopted the approach of "go slow, be patient." But this had been replaced with "active engagement" and "effective management," he said.
"We must remind Taiwanese businesspeople of the potential political risks in investing in China and in expanding economic relations," he said.
Chen called on businesspeople to work with the government to ensure that Taiwan remained the priority for economic investment.
He said that most people were aware of China's internal situation, and that some even mentioned the possibility of a collapse.
"In the past, few of us predicted that the Berlin Wall would fall. In the same way, few of us expected that the Soviet Union would collapse," he said.
However, Chen said that Taiwan could bear the brunt of global shockwaves caused by a collapse of the Chinese regime.
"Such a scenario would not be good for Taiwan. There are so many Taiwanese businesspeople investing in China and there's so much trade with China," he said.
Chen said that Taiwan was willing to contribute to "China's rise." But he said this increase in power should be accompanied by a "peaceful emergence" and the "beginning of democracy."
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