Q14
Therese Shaheen: President Chen, I'd like to leave this on a high note. We've been talking today about how the three parties—the PRC and Taiwan and (to the extent that we've discussed) the United States—and what has not been discussed is something that Mr. Burt Wolf mentioned, which is the tremendous magnet that keeps these three parties together and the world. Let me just discuss these three parties and get your opinion. China buys United States treasuries because they are solid. China has the money to buy those treasuries because the United States buys Chinese-manufactured goods and high-value added Taiwanese-managed factories that employ Chinese nationals that can make these goods cheap, and therefore the money goes back to the PRC. Taiwan is the economic juggernaut between the three that has played such a pivotal role in making the PRC economically successful. There is a bond there that I would like to think would keep some kind of break on tensions erupting into conflict. I would like to know your opinion on it.
President Chen: Taiwanese businesspeople have made considerable contributions to the development of China's economy. We are very pleased about this. After all, it is beneficial to China's 1.3 billion people. We affirm what they do and encourage them. We hope that the lives of China's 1.3 billion people can be improved. We also hope that Taiwan's achievement in democratization can act as a lighthouse for China's democratization. Naturally, Taiwanese businesspeople can make China's economy stronger. Yet you say that because of an economic take-off China can buy US government bonds and thus affect the US's political situation? We cannot ask every Taiwanese businessperson to return to Taiwan because of this.
We do not object to Taiwanese businesspeople doing business in other parts of the world, especially China, which may not be Taiwan's one and only market, but is nevertheless an important one. And we are glad that our businesspeople do well there. All we ask is that they should not neglect the so-called political and trade risks while engaging in cross-strait trade and economic contacts and commercial cooperation, including investing in establishing manufacturing businesses. All these management risks should be included in the costs. "Proactive management and effective liberalization" are our highest guiding principles for cross-strait economic and trade exchanges. Some people demand the immediate implementation of the Three Links [direct transportation, postal, and commercial links between China and Taiwan]. We think, however, that we have established at least two and a half of these links. What has still to be achieved is the introduction of direct and regular flights between the two sides. It is just a matter of time; however, that time has not come yet. We hope to begin with the "Mini Three Links [transportation, postal, and commercial links between China and Taiwan's Kinmen and Matsu islands]" and expand on them. If cross-strait cargo charter flights don't take off, then direct passenger flights will certainly not be in operation in the near future. We hope to sit down with China and conduct further consultations on Chinese tourists coming to Taiwan. We have already been making preparations over the past two or three years, and we welcome Chinese tourists to visit Taiwan. We have also made preparations for cross-strait direct cargo and passenger charter flights. It is China, however, that postpones their implementation because it thinks direct flights are not profitable. This is a pity. We will continue to engage in the necessary consultations with China. We also hope that efforts will be made, and positive results achieved, with regard to the normalization of cross-strait trade relations.
Q15
Moderator: Mr. President, just as a final, follow-up question for me. Implicit in her question was: Aren't these economic ties, trade, investment, aren't these flows so significant that the Chinese would never dare to engage in overt military action against Taiwan because that would be crippling in economic terms?
President Chen: Of course if China wants to invade Taiwan, it must assess all the possible consequences, including the price it will have to pay, the negative impacts it may cause, including the effect on investment by Taiwanese businesspeople in China. I am certain that even though the Beijing authorities sometimes make wrong judgments and decisions, on this serious issue of a military invasion of Taiwan, President Hu Jintao and the Beijing government should act with caution and fear. Such considerations do not concern Hu alone, but also the 1.3 billion people of China. On some matters, one can act rashly, but on others, there is absolutely no room for mistake.
Moderator: Thank you, and to all the people who helped put this event together—our appreciation. Thank you. Hsieh Hsieh [Chinese=Thank you].
President Chen: Thank you.