As Taiwan approaches the first presidential election that the KMT might lose, tensions between Beijing and Taipei are likely to rise. US policy has unfortunately made the situation even more flammable. Indeed, reports are circulating that Richard Bush, head of the American Institute, Washington's unofficial embassy in Taipei, has told Taiwan to cease its provocative behavior, lest the United States find itself pulled into a conflict in the Taiwan Strait. However, without a change in Washington's policy, such warnings are likely to remain unheeded.
Taiwanese President Lee Teng-hui (李登輝) triggered a new escalation in tensions with his call for conducting Beijing-Taipei relations on a "state-to-state" basis. China's response was predictably hostile; the People's Republic of China has established two missile bases near its coast, with the weapons apparently targeted on Taiwan. Taipei officials, including Vice President Lien Chan, responded by calling for development of batteries of long-range missiles to deter potential invaders. President Lee even indicated that his country already possesses some offensive missiles and warned that such Chinese cities as Beijing, Shanghai and Nanjing would suffer "terrible consequences" if the PRC attacked Taiwan. This appears to be a not very subtle hint that Taiwan possesses, and is prepared to use, nuclear weapons or other weapons of mass destruction in response to any attack.
Although responsible officials in neither capital want war (and certainly nuclear war), the possibility of mistake is real. Beijing is suffering from an economic slowdown and political uncertainty; assertion of sovereignty over Taiwan is one of the few things on which most mainland Chinese agree. Likewise, given Vice President Lien's otherwise lackluster presidential campaign, the KMT's tough stance toward Beijing may be its best hope for retaining power in the March election (though he recently seemed to distance himself from President Lee's rhetoric). As a result, the potential for a military confrontation seems dangerously high. Yet the Clinton administration's policy is both incoherent and dangerous. By misleading both parties, the US risks increasing the chances of war. In Washington the debate has been disappointing. Richard Bush has reiterated the administration's line: firm support for a "one-China" policy and equally firm criticism of Taipei's attempt to act independently. The readiness to appease Beijing was evident when an unnamed administration official criticized President Lee's comments on state-to-state relations and his failure to offer "a little bit more of an outstretched hand to get dialogue going."
At the same time, the administration has been inconsistent in its policy towards weapons sales to Taiwan. Yet for all the explicit calls for restraint, the administration has implicitly promised to defend the island state.
This is a dangerous mix. By rejecting Taiwan's attempt to enhance its status, Washington has undercut its own credibility in threatening military intervention. The administration's fulsome affirmation of Beijing's position encourages the PRC to act more belligerently. Yet Washington's implicit defense guarantee encourages Taipei to expect US military support in the case of trouble. The result could be a risky game of international chicken, leading to a formal declaration of independence.
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