Travel Reference
In-Depth Information
Relations with China, which had deteriorated under Lee Teng-hui, went from bad to
worse. The nadir was reached in 2005 when China promulgated an Anti-Secession Law
that codified China's long-standing threat to attack Taiwan should the island's leaders de-
clare independence. The move was met by mass protest rallies throughout Taiwan.
Chen won re-election in 2004 by a tiny margin. The day before the election both the
president and vice-president were mildly wounded in a botched assassination attempt.
The KMT immediately cried foul and led weeks of mass, violent protests. To this day,
many are convinced (though without evidence) that Chen was behind his own shooting.
Chen's second term was a classic lame duck, as the KMT dominated legislative as-
sembly blocked his every move. In 2006 Chen's approval rating hit 20% as a series of
corruption scandals implicated both his wife and son-in-law.
After stepping down in 2008, Chen Shui-bian immediately lost presidential immunity;
within six months, he was arrested on charges of money laundering, bribery and embez-
zlement of government funds. Chen was sentenced to life imprisonment in September
2009, reduced to 20 years in June 2010 as later trials found him not guilty of embezzling
government funds. Taiwan observers claim Chen's conviction did enormous long-term
harm to his party and to the cause of Taiwan independence.
ECFA: TRADE AGREEMENT OR TROJAN HORSE?
In June 2010, after two years of negotiations that began nearly as soon as Ma Ying-
jeou was sworn in as president, Taiwan signed a preferential trade agreement with
China called the ECFA (Economic Cooperation Framework Agreement). The pact,
similar to those signed between China and Hong Kong and Macau, aims to reduce
tariffs and ease trade. Opponents claim it is nothing but a disguise for unification
by subsuming Taiwan's economy into China's.
Large-scale protests were held from the time of the first visit by Chinese negoti-
ator Chen Yunlin until 2010. But to no avail. A total of 18 agreements have been
signed so far after eight rounds of negotiations.
The Ma government argued (and argues) that ECFA would give Taiwan a needed
boost in GDP and job growth. More importantly, it would reverse the country's mar-
ginalisation as other regional powers connected themselves with free-trade agree-
ments.
The results to date have hardly been spectacular. GDP growth is anaemic, for-
eign investment near zero, and trade with China appears to be growing less than
with other regional economies. In a bad sign, fresh fruit exports (which are grow-
ing) are being purchased not by wholesalers, but Chinese officials eager to win the
hearts of local farmers.
