Politics of The Republic of China - Current Political Issues

Current Political Issues

The dominant political issue today in the Taiwan Area in the Republic of China (ROC) is its relationship with the Government of the People’s Republic of China (PRC) that has jurisdiction over Mainland China. Specifically, many people in Taiwan desire the opening of direct transportation links with mainland China, including direct flights, which would aid many Taiwanese businesses that have opened factories or branches in mainland China. The former DPP administration feared that such links will lead to tighter economic and thus political integration with the PRC, and in the 2006 Lunar New Year Speech, Chen Shui-bian called for managed opening of links.

Mainland China and Taiwan resumed regular direct flights or cross-Strait relations on 4 July 2008, after six decades, as a "new start" in their tense relations. Liu Shaoyong, chair of China Southern Airlines, piloted the first flight from Guangzhou to Taipei (Taoyuan International Airport). Simultaneously, a Taiwan-based China Airlines flight flew to Shanghai. Five mainland Chinese cities will be connected with eight Taiwan airports, with 4 days a week, 36 round-trip flights across the Taiwan Strait, thereby eliminating time-consuming Hong Kong stopovers.

Other major political issues include the passage of an arms procurement bill that the United States authorized in 2001. In 2008, however, the United States were reluctant to send over more arms to Taiwan out of fear that it would hinder the recent improvement of ties between China and Taiwan. Another major political issue, is the establishment of a National Communications Commission to take over from the Government Information Office, whose advertising budget exercised great control over the media.

Banking reform, including consumer finance (limiting rates on credit cards) and bank mergers, is also a major issue. Taiwan's financial sector is quite unwieldy, with over 48 banks, none of which have a market share over 10%. In addition, the government controls 50% to 60% of Taiwan's banking assets. The ultimate aim is the creation of large financial institutions that will then have the ability to compete internationally.

The politicians and their parties have themselves become major political issues. Corruption among some DPP administration officials has been exposed. In early 2006, President Chen Shui-bian was linked to possible corruption. The political effect on President Chen Shui-bian was great, causing a divide in the DPP leadership and supporters alike. It eventually led to the creation of a political camp led by ex-DPP leader Shih Ming-teh which believes the president should resign. The KMT assets continue to be another major issue, as it was once the richest political party in the world. Nearing the end of 2006, KMT's chairman Ma Ying-jeou was also hit by corruption controversies, although he has since then been cleared of any wrong-doings by the courts. Since completing his second term as President, Chen Shui-bian has been charged with corruption and money laundering.

The merger of the KMT and People First Party (PFP) was thought to be certain, but a string of defections from the PFP to the KMT have increased tensions within the Pan-Blue camp.

In 2006, due to the Pacific Sogo Department Store scandal, the pro-KMT Pan-Blue Coalition moved to impeach the President but failed to obtain the requisite number of votes in the legislature. This failure led to a "Down Ah-Bian" campaign, which sought to pressure the president to resign from office. The campaign began on 1 September 2006. Campaign organizers claimed that the first day of the strike attracted 300,000 people in Taipei, while the police estimated the number to be closer to 90,000. The "Down Ah-Bian" event was being led by activist and politician Shih Ming-te (施明德) as a peaceful sit-in around the capital, besieging the presidential residence. While the protests have been largely peaceful, there have been isolated incidences of violence associated with the campaign, including fist fights between Pan-Blue and Pan-Green (pro-DPP) legislatures. The "Up Ah-Bian" event was organized to counteract the "Down Ah-Bian" campaign. On 13 October 2006, the Pan-Blue Coalition attempted again to pass a recall motion against the ROC President Chen Shui-bian, which also failed to garner sufficient votes in the legislature.

On 3 November 2006, prosecutors in Taiwan stated that they have enough evidence to indict Chen's wife on corruption charges in connection with her handling of a secret diplomatic fund. According to the prosecutors, while Chen would not be indicted while in office, there is a possibility that he would be indicted after he leaves office.

In February 2007, Mr. Chen Shui-bian said that Taiwan will have to upgrade its weaponry to maintain the military balance with mainland China. He believes that Taiwan's advantage is slipping against mainland China's rising military prowess.