China and Taiwan have long been on negative terms over the land that Taiwan occupies. Since 1949, when a civil war was resolved between China and Taiwan, Taiwan has been independent of China. However to this day China believes that Taiwan should be under their jurisdiction and control. Therefore there is usually a great deal of tension between the two nations. For years China has pointed missiles at Taiwan in an effort to control and threaten the nation. However recent reports indicate that China will now be decreasing the amount of missiles aimed at Taiwan. This should act as a sign of a better relationship between the two nations in the near future. However Taiwan has stated that they have no plans to stop their arms buildup. The ministry of defense for Taiwan has estimated that there is over 1,300 Chinese missiles aimed at Taiwan.
It looks as thought the relationship could be improving. Chinese leader Hu Jintao is asking for peace and trust between the two nations. It is suspected that trade incentives are encouraging both nations to lower their guards and become more friendly. Last month both China and Taiwan started new flight services which allow citizens to fly to and from China and Taiwan direct. Also the two nations have revamped their postal system so that the nations are better equipped for trade.
I am always astonished at what powerful incentive money is for nations. So often when financial incentives are involved, enemies reconcile their differences in order to do what is fiscally intelligent. It does not always work, but in my mind financial diplomacy is one of the best peacemaking tactics around.
