Taiwan Rejects Most of U.S. Arms Package Offered in 2001

June 16, 2007 at 9:20 am | Posted in China, 美国, 美國, 軍事, Military, News, Politics, Taiwan, United States, 军事, 台灣, 台湾, 政治, 新聞, 新闻, 中国, 中國 | 2 Comments

Jane Rickards in Taipei, June 16 2007 Washington Post

After six years of hesitation, Taiwan’s legislature voted Friday night to approve only a small portion of an $18 billion arms package suggested by the Bush administration as the best way to gird the self-ruled island against any attack by China.

The negotiated decision, which passed on a vote of 176 to 20, called for Taiwan to spend $300 million on military purchases from the United States. Legislators approved the purchase of P-3 Orion anti-submarine reconnaissance aircraft but declined to equip the island with the advanced PAC-3 antimissile systems encouraged by the Bush administration, opting instead to update existing Patriot missile batteries.

Legislators also declined to purchase diesel-electric submarines as suggested by Washington but promised to study the issue further.

The approved purchases fall far short of the arms package proposed by the Bush administration in 2001 as the best way to meet the challenge of China’s military buildup. The legislature’s decision seemed likely to intensify complaints in Washington that Taiwan is unwilling to shoulder the expenses necessary to maintain a level of military preparedness.

Stephen Young, director of the American Institute in Taiwan, the de facto U.S. embassy here, had repeatedly called on Taiwan’s government and legislature to come up with funds for the arms package suggested by Washington. But despite his appeals, and those of other officials in the Bush administration, the issue had long been bogged down in Taiwan’s partisan politics.

President Chen Shui-bian and his pro-independence Democratic Progressive Party battled long and hard to get the arms package funded, calling it vital for Taiwan’s defense. But the opposition Nationalist Party, which controls the Legislative Yuan, refused to endorse it, saying the suggested purchases were too expensive, inappropriate for Taiwan’s needs and likely to fuel an arms race with the mainland.

Philip Yang, a political science professor at National Taiwan University, said the Nationalists decided to endorse at least the Orion aircraft purchase under the influence of Ma Yingjeou, the Nationalist candidate in the 2008 presidential election, who is eager to show he can deliver better relations with the United States than the often-contentious Chen.

Analysts said the approval of even a small part of the arms package might persuade Washington to approve a Taiwanese request for purchase of advanced F-16 aircraft. The budget called for buying the F-16s if Washington agreed to sell them, according to Su Chi, a Nationalist lawmaker.

The Bush administration had been unwilling to entertain the Taiwanese request for F-16s, saying the languishing 2001 arms package proposal had to be dealt with first.

There’s an arms “race” no matter what Taiwan decides to do. It’s not as if China slowed down its military buildup and modernization process over the past six years. It’s true that Taiwan cannot afford to engage China head on, but the island must possess enough of a deterrent to make the PLA think twice before attempting to “liberate” Taiwan.

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China Proposes Combining Surnames

June 12, 2007 at 6:27 pm | Posted in China, 語言, 语言, Language, News, 新聞, 新闻, 中国, 中國 | 4 Comments

June 12 2007 BBC News

Chinese officials are considering measures to expand the number of surnames in the country in order to prevent confusion, state media says.

At the moment around 85% of China’s 1.3bn residents share around 100 surnames, a survey in April by the Ministry of Public Security found.

The most popular name, Wang, is shared by some 93 million people.

Now the ministry wants to give parents the option of combining both surnames for their children, China Daily said.

“If a father’s family name is Zhou, and the mother, Zhu, the baby could have four options for the surname: Zhou, Zhu, Zhouzhu or Zhuzhou,” the newspaper said.

This could create around 1.28m new surnames, said Guan Xihua, a household registration officer with the Beijing public security bureau.

The prevalence of some surnames caused problems in daily life and more of them would reduce repetition, she said.

In addition to Wang, some 92 million people are called Li, while another 88 million are called Zhang, the survey in April found.

More than 100,000 people share China’s most popular name, Wang Tao, another report by the Chinese Academy of Social Sciences found.

The ministry is now circulating a new draft regulation, that would allow couples to go for the doubled option, to police departments around the country for their comments, the daily said.

I don’t think this idea’s going to fly. Chinese people put a lot of pride and importance in their last names. It seems unlikely they would go around adding a character here and there. The Chinese culture has already suffered a lot under the CCP’s rule, I didn’t think it was possible for them to mess it up some more.

Chinese Olympic Firms Deny Abuse

June 10, 2007 at 8:02 pm | Posted in China, News, Olympics, Taiwan, 台灣, 台湾, 奥运, 奧運, 新聞, 新闻, 中国, 中國 | 1 Comment

Michael Bristow in Guangdong, June 10 2007 BBC News

Chinese firms awarded lucrative contracts to produce merchandise related to the Beijing Olympics next year have denied claims they exploit their workers.

They have been accused of employing child labour, paying wages that are below the legal minimum and ignoring safety standards.

But two out of the four firms cited in a report published by an alliance of trades unions, non-governmental organisations and labour groups say they treat their workers well.

Perhaps the most serious accusations in the report relate to Lekit Stationery, a Taiwanese company that has been operating in the city of Dongguan, in Guangdong province, for the last 20 years.

According to the report, Lekit, which makes paper cups, notebooks and stickers adorned with Olympic motifs, employed children and forced them to work up to 13 hours a day.

“It’s not true,” company manager Michael Lee told the BBC. “We work for some of the best brand names in the world and they check our company every month.”

To prove his point, Mr Lee produced a framed certificate that had been hanging on an office wall. It was from a well-known Western stationery company and praised Lekit for its high “standards and practises in dealing with workers and their working environment.”

“It’s not worth it for us to hire 20 or 30 underage workers to increase our capacity. We would lose too much,” said Mr Lee.

He said the factory’s 420 workers earned a basic monthly salary of around 700 yuan (£46; $91). Overtime is paid at time and a half. Dormitory accommodation is free and the firm charges employees 6 yuan a day (£0.40; $0.80) for three meals.

In a bid to further convince the BBC that his company abides by the rules, Mr Lee conducted a tour of his neat-looking factory. It was Sunday, so only a handful of well-dressed workers were folding, stacking and collating paper products.

“There’s complete compliance,” the manager said as he led the tour past employees sitting next to fans that cooled them as they worked.

Outside the factory gates it was impossible to find anyone who could verify the claim that children had been employed at the firm…

Fleeing Taiwan

June 8, 2007 at 9:59 am | Posted in China, 經濟, 经济, Economics, News, Taiwan, 台灣, 台湾, 新聞, 新闻, 中国, 中國 | 4 Comments

June 8 2007 WSJ Review and Outlook

If you want to know which way Taiwan’s economy is headed, consider this: At a time when most Asian countries are trying to slow the flow of capital into their countries, Taipei is trying to stop it flowing out. Talk about a cure that’s worse than the disease.

New controls limit new mutual funds to NT$10 billion ($302 million) in offshore investing. The measure isn’t quite a formal rule — it’s a “guideline” hammered out in late May by the central bank and the Securities Investment Trust and Consulting Association, a mutual fund trade group. While the deal doesn’t appear to be legally binding, the bank reportedly will use moral suasion to enforce it, in part by slowing down new mutual fund applications for funds that plan to violate the cap.

The Central Bank of China (Taiwan) has been growing increasingly worried about the weakening of the Taiwan dollar, which has been on a downward trajectory for the better part of the past year. Other adventures in currency manipulation have included a recent bout of unanticipated open-market operations designed to spike exchange and interest rates as a way to “punish” those with the temerity to sell short the Taiwan dollar.

Now, at least, the central bank is inching closer to the true reason for the Taiwan dollar’s softness — investment outflows. Net outflows hit nearly $11 billion for the first quarter of this year. Taiwan’s net investment flows haven’t been in the black since the second quarter of 2005. Even in a region awash with liquidity and in the midst of a global bull market, investors just don’t want to put their money in Taiwan.

Structural factors are to blame. One culprit, ironically enough, is the restriction on corporate investment in the mainland. Taiwanese companies are allowed to invest only an average of 40% of their value (the limit varies by industry) there. But because such investment is so lucrative, Taiwanese companies and entrepreneurs are increasingly opting to work around the law. They can do this by setting up shop in less restrictive countries, leaving Taiwanese investors with fewer companies at home in which to put their money.

On a related note, Taiwanese economic policy hasn’t kept up with the times. There is still a strong regulatory and policy bias in favor of manufacturing over services, despite the fact that Taiwan is at the stage of development where it should be expanding its service sector. Spaghetti-like corporate structures and endemic insider trading also discourage investors from diving too deeply into Taiwanese equities. Bad policies and their outcomes — from a chaotic banking sector to hurdles for companies that want to on-shore research and development while offshoring manufacturing — leave many Taiwanese companies and their stocks underperforming.

To top it all off, there’s political gridlock when it comes to addressing many of these problems. Fighting between the two main political parties has kept the focus off improving the economic climate. It’s hard to think of any major economic policy overhaul in the past seven years.

In imposing limits on offshore investment, the central bank is asking Taiwanese investors to take one for the team by keeping more of their money at home despite the poor returns. But the bank is missing the point. The weak exchange rate is a symptom — not the disease — and capital controls will only make it worse.

June 8 2007 鉅亨網

如果你想要了解台灣經濟的走向,以下所述可以當 作參考:亞洲多數國家都在防堵外資流入,台灣卻反而 在阻止資金外流,要用這種方式來治療經濟惡化,乾脆 讓它生病算了。

台灣最新規定,新成立的基金投資海外的額度不得 超過新台幣 100億元,這種手段並不尋常。這項規定是 由台灣央行和共同基金交易團體-金管局在 5月底所訂 立。雖然此說似乎於法無據,央行據說將使用道德勸說 的方式予以貫徹。另外,對於有意違反這項規定的共同 基金,央行將放緩它們的申請進度。

《華爾街日報》指出,台灣央行越來越擔心新台幣 走貶,該貨幣去年多數時間處在貶值的狀態。央行干預 新台幣的冒險做法,包括近期造成市場騷動,無預警的 進行公開市場操作,目的在推高新台幣匯率以及利率, 藉此對魯莽放空新台幣的人士作出懲處。

台灣央行現在至少向新台幣走貶的真正理由-資金 外流,又邁進了一大步。今年第 1季淨流出台灣的資金 將近新台幣110億元。自2005年第2季以來,投資台灣的 資金淨額便未曾出現盈餘。即便亞洲地區資金氾濫,全 球多頭氣氛濃厚,投資人就是不願把他們的錢放在台灣 。

結構性因素是為主因。很諷刺的,罪魁禍首正是台 灣政府對於企業投資中國的限制。政府規定台灣企業投 資中國的資金不能超過它們資產淨值的 40%。不過由於 投資中國有利可圖,企業於是游走法律邊緣。他們在限 制較寬鬆的國家成立一間公司,迂迴進軍中國,這使得 台灣投資人可以投資的企業越變越少。

和上述做法雷同的,是台灣經濟政策沒能與時俱進 。台灣的法令和政策過度偏向製造業,忽視了服務業的 發展。事實上,台灣的發展已經到了一個階段,必須擴 大服務業的發展。通心麵似的企業結構,以及近來頗為 流行的內線交易,導致投資人不敢過度涉入台灣股市。 政策不良加上它的後遺症-從紛亂的銀行業,到企業希 望在台灣研發,在中國製造的做法受到阻礙,讓釵h台 灣企業及其股票表現不甚理想。

除此之外,由於台灣兩黨政治陷入僵局,導致釵h 問題延宕無解。兩個主要政黨的惡鬥,造成改善經濟環 境的問題遭到移轉。實在想不出,台灣過去 7年來,曾 經作出什麼比較重大的經濟決策。

為了加強對境外投資的規範,台灣央行希望台灣投 資人能夠顧全大局,儘可能把資金留在國內,儘管國內 的投資報酬遜色了一些。不過央行真的搞不清楚狀況, 新台幣匯率的疲弱不振,正是一個徵兆,不是一個疾病 ,控制資金只會讓病況變得更糟。

Taiwan Alarm at Costa Rica Move

June 7, 2007 at 10:06 am | Posted in China, Costa Rica, News, Politics, Taiwan, 台灣, 台湾, 哥斯達黎加, 哥斯大黎加, 政治, 新聞, 新闻, 中国, 中國 | 3 Comments

June 7 2007 BBC News

Taiwan has ordered diplomats to shore up relations with its remaining allies after Costa Rica became the latest country to switch allegiance to China.

Chinese and Taiwanese academics said that Costa Rica’s move could trigger a domino effect, with other Latin American countries following suit. Only 24 states now recognise Taiwan, which Beijing regards as a breakaway province…

“I’ve asked our embassies to take extreme precautions against any further pressure by the Chinese communists,” said Foreign Minister James Huang, whose resignation offer was refused by the president.

Opposition legislator John Chiang warned that other Latin American countries might now also switch allegiance to mainland China.

“We must be on our guard as the Costa Rican move might trigger a domino effect. We should not underestimate the grave diplomatic situation Taiwan is in,” he said…

Costa Rican President Oscar Arias said his country needed to develop closer ties with China for economic reasons. China offered Costa Rica “an astronomical figure” to leave Taipei’s diplomatic fold, according to Mr Huang.

Taiwan and China have been governed separately since the end of a civil war in 1949, and both often accuse each other of using “chequebook diplomacy” to attract allies.

China sees Taiwan as part of its territory has threatened to use force if the island ever moved to declare formal independence.

It refuses to have diplomatic ties with nations that recognise Taiwan.

Chinese Foreign Ministry spokeswoman Jiang Yu called on other countries in the region to establish diplomatic relations with China.

“We are ready to establish normal state relations with these countries. The Taiwan question is the sole obstacle to establishing diplomatic ties,” she told a briefing.

The remaining 24 nations that are allied to Taipei are mostly small and impoverished nations in the Caribbean, Africa and the south Pacific, including the Solomon Islands, Nicaragua, Panama and Burkina Faso.

Americans Want U.S. to Protect Taiwan

May 31, 2007 at 11:36 pm | Posted in China, 美国, 美國, 軍事, Military, News, Politics, Taiwan, United States, 军事, 台灣, 台湾, 政治, 新聞, 新闻, 中国, 中國 | 2 Comments

ustiawanchina

June 1 2007 Angus Reid Global Monitor

Many people in the United States believe their country should stand by Taiwan in case of a military confrontation with China, according to a poll by Zogby Interactive released by UPI. 53.5 per cent of respondents think the U.S. has a responsibility to defend Taiwan should it be attacked by China, while 36 per cent disagree.

Taiwan was formed in 1949 after the government of Chiang Kai-shek was forced out of China as Mao Zedong’s communists were gaining prominence. A series of democratic reforms implemented by Taiwanese president Lee Teng-hui in the early 1990s allowed Taiwan’s residents to take part in free and fair elections. To this date, Mainland China considers Taiwan a “renegade province” and reserves the right to bring it under control.

In March 2005, legislators in China’s National People’s Congress passed the anti-secession law, which aims to prevent Taiwan’s independence. The legislation calls for the use of “non-peaceful means and other necessary measures to protect China’s sovereignty and territorial integrity.”

On May 25, the Pentagon released a report titled “Military Power of the People’s Republic of China, 2007”, in which it asserts the Asian country is engaged in “a sustained effort to develop the capability to interdict, at long ranges, aircraft carrier and expeditionary strike groups that might deploy to the Western Pacific.”

The report also explicitly says Beijing does not yet have “the military capability to accomplish with confidence its political objectives on (Taiwan), particularly when confronted with the prospect of U.S. intervention.”

pollresults

Asia Courts Japanese Engineers

May 25, 2007 at 3:45 pm | Posted in China, 科技, 經濟, 经济, Economics, 韩国, Japan, News, South Korea, Taiwan, Technology, 南韓, 台灣, 台湾, 新聞, 新闻, 日本, 中国, 中國 | Leave a comment

japanaesebraindrain

Martin Fackler in Hsinchu, May 23 2007 New York Times

One of the hottest exports from Japan these days is not video games or eco-friendly cars. It is engineers.

As the once-vaunted Japanese electronics industry has downsized to survive global competition, it has inadvertently set off a brain drain. Thousands of Japanese engineers and other industry professionals have gone to Taiwan, South Korea and China to seek work at aggressive, fast-growing companies on the prowl for access to Japanese technological skills.

But the recent outflow of job-seekers is a sign of just how much Japan has changed after a decade of increased competition, corporate belt-tightening and the end of lifetime job guarantees. This harsher world has led Japan’s famously conservative salarymen to become more aggressive in their job choices and to view their careers as something for their own benefit and not simply as service to their companies, employment experts said…

The government of Taiwan says at least 2,500 Japanese have moved there in recent years to work mostly in technology-related manufacturing industries…

The migrants are finding themselves welcomed with open arms and generous pay. Some countries, like Taiwan, are aggressively courting Japanese professionals. Companies in Taiwan are eager to gain access to Japan’s leading technology in areas like electronics, both to catch up with Japanese front runners like Sony and to stay ahead of fast-gaining Chinese rivals. The Taiwan government says it has spent $20 million a year since 2003 to recruit foreign engineers, including Japanese in such important industries as semiconductors and flat-panel displays…

The largest number of offers are from companies in booming China, she said, but those with the most coveted skills tended to get hired by companies in Taiwan, which are rushing to close the technological gap with Japan…

Hiroshi Itabashi was an engineer with more than 20 years experience at a midsize Japanese television maker when he got a phone call out of the blue in 1999 from Delta Electronics, a fast-growing Taiwanese electronic components company…

“They gave me this exciting opportunity to build a whole new business from scratch,” said Itabashi, 56, who asked that his former Japanese employer not be identified. “This is something you can’t do in Japan. These days, Japanese companies always seem to be closing down operations, not starting new ones.”

Welcome to Beijing “Disneyland”

May 9, 2007 at 12:18 pm | Posted in China, 盜版, 科技, 經濟, 经济, Economics, IPR, News, Piracy, Politics, Technology, 政治, 新聞, 新闻, 智慧財產權, 智慧财产权, 中国, 中國 | 1 Comment

This should serve as a warning to all foreign investors looking to enter China. Compared to the rest of the world, China actually has a relatively comprehensive set of IPR regulations. The problem right now lies in their enforcement. Beijing claims that it’s making an effort to crack down on piracy, which is an integral part of almost every industry imaginable within China, from DVDs and LV handbags to SMART cars and prescriptions drugs.

For years, Beijing has placed the blame of China’s lack of IPR enforcement upon the local governments, which it claims are ignoring the policies implemented by the central government. This may be true to some extent but let’s not forget what we’re dealing with here. As a one-party state, the CCP has complete control of the system. The government is involved in almost every single aspect of the economy. So how credible is the CCP when it claims that it’s already doing its best? Unless…PIRACY IS GOOD.

China’s aspiration for globally recognized national champions and its ambition to establish itself as a technological superpower will be realized at the expense of foreign investors. Unlike other previous developing countries, which all had serious IPR problems but eventually caught up to Western standards brought upon by foreign pressure, China’s has little motivation to follow suite since it has more leverage than its trading partners. Although foreign investors understand the high level of risk involved relating to IPR infringement when they invest in China, with a potential consumer market of 1.3 billion, the CCP is confident that foreign investors will continue to flock to China with their new technologies. Currently, within most industries, foreign investors are required to pair up with a domestic partner. In time, the domestic partner will terminate the partnership and compete with its former foreign partner using a “similar” product. When the two parties go to court and when push comes to shove, as with everything else in China, those with the “connections” will prevail, leaving foreign investors completely vulnerable to such business risks.

As of now, the CCP will only do what’s best for its domestic industries, which is to turn a blind eye to piracy and allow local Chinese firms to profit and “innovate” at the expense of foreign investors. In the future, when Chinese firms become serious about R&D, that’s when the CCP will get serious about IPR protection as well.

As Mirror Images Emerge, Taiwan, China Can Reconcile

May 6, 2007 at 8:39 am | Posted in China, 經濟, 经济, Economics, 軍事, Military, News, Politics, Taiwan, 军事, 台灣, 台湾, 政治, 新聞, 新闻, 中国, 中國 | 2 Comments

waitinggame

John C. Bersia, April 30 2007 Orlando Sentinel

Like bad Chinese food, the Beijing-Taipei flap over the 2008 Olympics torch relay leaves a funky, disappointing aftertaste. It is not what one should expect in connection with an event that celebrates human capability, spirited competition, collective pride and unity.

Ironically, the torch relay — advertised by China as the most inclusive in history — has ignited a firestorm of divisiveness more than a year before it is scheduled to light up the Olympics’ opening ceremony. Beijing wishes to run the torch through Taiwan as a continuation of its trek across parts of China, thus underscoring its claim to the island. Taipei seeks a route through third countries.

Whether this issue is resolved or not, the contentiousness between China and Taiwan — after nearly 60 years — has grown tiresome. No wonder some people throw their hands into the air and exclaim, “Why don’t they simply duke it out, and let the winner take all of China?”

Chinese leaders certainly appear prepared — and at times eager — for confrontation. The threat of military force lingers just behind their lips every time Taiwanese officials toy with notions of independence. But surely Beijing’s communist rulers know that an invasion of the island would fail, even if they managed to obliterate Taiwan. Most damaging, such action would deprive them of their only significant claim to legitimacy: Chinese economic strength.

If, because of war, China lost the ability to bring large numbers of have-nots to a higher standard of living each year, the Chinese people would stand up again — this time, with their pitchforks aimed directly at the leadership that supposedly liberated them in 1949. The Communist Party would die overnight.

Bear in mind that none of this discussion has considered the impact of China-Taiwan conflict and disruption on the regional and global economies. Clearly, this is not a civil spat that should be allowed to burn itself out.

So, what are the other options?

The tedious status quo, for one. Another would be for Taiwan to follow in the footsteps of Hong Kong and Macau, and end once and for all the artificial separation of China. Beijing would love that decision; indeed, it has dangled many incentives before Taipei to induce it to end the rift. Looking to the Hong Kong example, with a 50-year transitional agreement guaranteeing the district’s way of life, many analysts see opportunities for Taiwan. In fact, Taipei has the leverage to demand much more from such an arrangement.

It has little reason to take that route, though. After all, Taiwan occupies the higher ground in terms of its democratic government and free-market economy. China is still traveling down a sometimes herky-jerky road to reform. The controlling impulses of its moribund ideology hamper political development. Democratic practices are evident only at the village level. In addition, excessive state influence lingers over China’s economy, despite its power and numerous free-market elements.

Further, I do not buy the idea embraced by some that Taiwan might more effectively work to change China from the inside than it can in its current position.

I would prefer to see the opposite, that is, for China to join Taiwan, and have every expectation that reconciliation is possible later in this century. After all, Beijing and Taipei grow more interdependent with each passing year. Pressures for wider reform within China will not pause. Eventually, a “Big Taiwan” will rise on the mainland. At that point, when the two systems mirror one another, they will merge.

In the meantime, the key will be for sensible heads to prevail, particularly during moments of tension such as the spat over the Olympics. China and Taiwan must, at all costs, avoid sacrificing their vast mutual interests on the altar of their aging dispute.

Reunification is an option, but Mainland China must provide Taiwan sufficient motivations to do so. At its current rate of progress, it will be decades before “mirror images” emerge across the strait, especially if the CCP intends to hold on to power.

Taiwan and St Lucia Restore Ties

May 1, 2007 at 7:18 pm | Posted in China, 聖露西亞, News, Politics, St Lucia, Taiwan, 台灣, 台湾, 圣卢西亚, 政治, 新聞, 新闻, 中国, 中國 | 1 Comment

stluciaflag

Taipei, May 1 2007 BBC News

Taiwan has re-established formal diplomatic ties with the Caribbean island of St Lucia – taking the number of its diplomatic allies to 25. Taiwan’s foreign minister signed the agreement with his St Lucian counterpart on a visit to the island. The decision is almost certain to prompt China to sever its ties with St Lucia, correspondents say. Beijing regards Taiwan as part of its territory, and requires its diplomatic allies not to recognise the island.

Both Taiwan and China have battled for years for diplomatic partners, accusing each other of using “dollar diplomacy” to win over allies. In recent years, China has been gaining the upper hand as its status and economic position around the world have grown, the BBC’s Caroline Gluck in Taipei says. Tuesday’s agreement re-establishes ties that were cut by St Lucia a decade ago under a previous administration.

Taiwan’s diplomatic victory was announced back home via a live satellite link from St Lucia, our correspondent reports.

“After four-and-a-half months of hard work, we accomplished the mission to restore diplomatic ties with St Lucia,” Foreign Minister James Huang told a Taipei press conference via telephone. He said Taiwan would offer St Lucia help on a range of projects, from agriculture, education and business to medical assistance.

He also said he hoped the deal would not result in China cutting its ties with St Lucia.

“We hope for a win-win situation for all and we do not mean to engage in zero-sum games with China,” he said. But the signs from Beijing were not encouraging.

“The resumption of diplomatic relations between St Lucia and Taiwan is a flagrant violation of the declaration on the establishment of diplomatic relations between China and St Lucia,” foreign ministry spokesman Liu Jianchao said. He urged St Lucia to rethink the decision or “be responsible for the consequences incurred”.

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