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CROSS-STRAIT RELATIONS

FACT FOCUS

President Lai Ching-te’s Four Pillars of Peace action plan encompasses the following key elements:
  • Strengthened national defense;
  • Improved economic security;
  • Stable and principled cross-strait leadership;
  • Values-based diplomacy.
Since the government relocated to Taiwan in 1949, it has exercised jurisdiction over Taiwan Island, Penghu Islands, Kinmen Islands, Matsu Islands and a number of smaller islands, while China has been under the control of the authorities in Beijing. Beginning with the acceleration of Taiwan’s democratization in the late 1980s, many restrictions concerning civil exchanges with China have been lifted. Today, Taiwan is one of the biggest investors in China. Between 1991 and the end of December 2023, approved investment in China comprised 45,523 cases totaling US$206.37 billion. In 2023, the value of cross-strait trade reached US$165.97 billion.
The Straits Exchange Foundation
in Taipei City manages cross-strait
technical and business affairs.
The Straits Exchange Foundation in Taipei City manages cross-strait technical and business affairs.(Chin Hung-hao)
 
In June 2008, institutionalized talks between Taiwan’s semiofficial Straits Exchange Foundation and China’s Association for Relations Across the Taiwan Straits resumed after a 10-year hiatus. By August 2015, 11 rounds of negotiations had been held alternately on either side of the Taiwan Strait, producing 23 formal agreements, of which 21 have come into effect, and two consensuses. Most significant among the accords is the Cross-Straits Economic Cooperation Framework Agreement concluded in June 2010, which aims to institutionalize trade and economic relations between Taiwan and China.
Peace and Stability
In order to promote thorough domestic reforms, the country requires a peaceful and stable external environment, especially with regard to relations with China. In his inaugural address on May 20, 2024, President Lai stressed that peace in the Taiwan Strait, mutual benefit, and prosperous coexistence should be the shared goals of both parties.
Democracy and freedom are Taiwan’s unwavering commitments, and prosperity, gained through lasting peace and stability, is our objective. The government will neither yield nor provoke, but instead uphold the Four Commitments and maintain the cross-strait status quo.
Cross-Strait Trade
However, in recent years China has set political preconditions for cross-strait exchanges, unilaterally suspended official interactions and continuously exerted political suppression and military coercion. On Jan. 2, 2019, China proposed exploration of the “one country, two systems” model for Taiwan, a profound disruption of the status quo of regional peace and stability.
In 2022, Nancy Pelosi, then speaker of the US House of Representatives, visited Taiwan, and the following year then President Tsai Ing-wen met with the subsequent House speaker, Kevin McCarthy. In the wake of both events, the Chinese authorities ramped up pressure on Taiwan through intensified political interference and military threats along with economic coercion and other gray zone tactics.
In light of geopolitical tensions, the government has been updating the Act Governing Relations Between the People of the Taiwan Area and the Mainland Area. Amendments passed to date have established an oversight mechanism for cross-strait political agreements and adjusted fines for unauthorized Chinese investment. Articles were also amended to tighten restrictions on travel to China by anyone who possesses or has access to key national security-related technologies and was commissioned by or received a research grant from the government, as well as to strengthen regulations preventing Chinese enterprises from conducting unpermitted business activities in Taiwan via third party investment.
As part of Taiwan’s COVID-19 pandemic response, the government implemented border restrictions on Chinese citizens entering Taiwan. These measures have since been relaxed to address humanitarian concerns, industrial needs and education rights, allowing Chinese citizens to come to Taiwan for family visits, to comply with contractual business obligations as part of internal personnel transfers within multinational enterprises, and to attend academic exchange or degree programs in Taiwan. Moving forward, the government will continue to review and adjust its policies in accordance with the latest international, regional and cross-strait developments.
The government will consider the development of the cross-strait situation in accordance with the principles and directions of President Lai’s cross-strait policy. It will listen to voices from all sectors of society, strengthen management mechanisms for cross-strait exchanges, improve democracy and defense mechanisms and coordinate with the relevant authorities to conduct amendments of laws and regulations when necessary. This is intended to promote positive cross-strait interactions and maintain normal and orderly exchanges between the two sides.
 
Consistent Approach
The government will continue to address cross-strait ties based on the Constitution of the ROC (Taiwan), the Act Governing Relations Between the People of the Taiwan Area and the Mainland Area, and the will of the people.
The government calls on the authorities in Beijing to face the reality of the ROC (Taiwan)’s existence and respect the choices of the people of Taiwan by engaging with the legitimate government they have chosen, while encouraging China to choose dialogue over confrontation and exchange over containment, and pursue peace and mutual prosperity under the principles of parity and dignity.
The government has repeatedly stated that the Chinese Communist Party should cease its political and military intimidation, and share with Taiwan the global responsibility to maintain peace and stability in the Taiwan Strait as well as the greater Indo-Pacific. Despite threats from the CCP, Taiwan will actively promote the Four Pillars of Peace action plan to safeguard the values of freedom and democracy and defend regional peace and stability. We will promote healthy and orderly cross-strait exchanges in accordance with the ROC (Taiwan)’s relevant laws, regulations and Constitution.
The government will continue deepening cooperation with the US, Japan and other like-minded countries to counter China’s threats to Taiwan, promote regional peace, stability and prosperity, and protect the nation’s interests.
 
Yushan