October 29, 2018

Military tensions around Taiwan could make it harder to resolve the trade war

Military tensions around Taiwan could make it harder to resolve the trade war Chinese authorities hate the word "independence." But whether spoken by fringe figures in Hong Kong or marchers demonstrating in Taiwan, they are hearing it all the same.To get more financial news china, you can visit shine news official website.

Compounding frustrations in Beijing have worsened ties with the United States, which sailed warships through the Taiwan Strait on Monday for the second time since July. International criticism has also mounted over a human rights crackdown on ethnic Uighurs in the western region of Xinjiang, whom authorities fear want to break away.

"The main problem is that the Communist Party of China is paranoid about calls for separatism and independence and continually overreacts to them," Michael Kovrig, senior advisor for North East Asia at the International Crisis Group, told CNBC on Thursday in an email. China's foreign ministry did not immediately respond to CNBC's request for comment. But at a press briefing in August, the foreign ministry's Lu Kang reiterated Beijing's stance on Taiwan, saying: "There is only one China in the world.

The government of the People's Republic of China is the sole legal government representing the whole (of) China. Taiwan is an inalienable part of China's territory." The United States and China are currently engaged in a tit-for-tat tariff war, and military tensions surrounding Taiwan could further complicate efforts at resolving the trade standoff. U.S. President Donald Trump "may also be attempting to put more pressure on China on multiple fronts in order to gain negotiating leverage on trade," Kovrig said. "If so, this kind of linkage between issues is a risky tactic that could backfire by deepening the rift between the U.S. and China.

" Kovrig said China's "heavy-handed" responses to Taiwan add to frustration among local independence advocates while eliciting stronger shows of support for the island from the U.S., potentially setting the stage for escalating tensions. "It would be better for China to take a more relaxed and confident approach, based on soft power and positive incentives, rather than threats and punishments," he said.Beijing regards Taiwan as a renegade province under its One China Policy, and opposes other countries pursuing diplomatic ties with the self-ruled island. China often backs anti-independence warnings with military threats, which it repeated Thursday.

"If someone attempts to split Taiwan from China, the Chinese military will take any necessary actions at any cost," Defense Minister Wei Fenghe said at a military forum in Beijing, the state-run China Daily reported. Despite China's efforts to isolate Taiwan politically, Beijing has long courted Taipei's investments and their economic ties remain robust. Taiwanese technology giant Foxconn, which manufactures iPhones for Apple and Kindles for Amazon in factories in southern China, is a major job-provider.

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