ABSTRACT
This chapter examines the current problems affecting Cross-Strait relations and discusses the underpinnings of China and Taiwan's policies towards one another. Based on a review of Cross-Strait relations before 2011, the chapter provides an analysis of the short-term policy goals of China and Taiwan in terms of bilateral relations. The chapter underlines that despite Ma Ying-jeou's entry into the presidential office in 2008 and his policy of 'rapprochement with Beijing, friendship with Japan and pro-US tilt', peace and stability across the Taiwan Strait remain weak and unpredictable. One of the most difficult dilemmas in Cross-Strait relations is the fact that Beijing cannot accept the existence of Taiwan without going against the One China principle. For the PRC, the One China Principle offers no policy space for negotiation with the Republic of China (ROC) in terms of sovereignty. Taiwan should continue to strengthen its relationship with the US and Japan in order to deter the possibility of China's aggression.
