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September 28, 2022

“In the 1999 resolution regarding Taiwan’s future passed by the Democratic Progressive Party, it is stated very clearly that any change to the status quo of Taiwan must be decided by the people of Taiwan through referenda.” — Chen Shui-bian

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“But no matter how people define ‘independence,’ at the heart of the matter is a desire to affirm the Taiwanese’s right to our identity for ourselves through the establishment, recognition and continued existence of a Taiwanese nation-state.” – A Taiwanese citizen

A meeting in New York last week between China’s foreign minister and Henry Kissinger is a good reminder that China’s territorial ambitions are at odds with its history. Every time it lets liberty creep in, its economy has improved; whenever it cracks down on liberty, the economy weakens. Even if China uses force to take Taiwan, it will be killing the goose that lays the golden eggs.

In 1949, after Mao Zedong’s communist forces won the war against the nationalists, Chiang Kai-shek, who had been President of the Republic of China (ROC) since 1928, went into exile in Taiwan. He led independent Taiwan from 1949 until his death in 1975.

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Mao Zedong was chairman of the CCP from 1935 until he died in 1976, and was the leader of the People’s Republic of China (PRC) from 1949 to 1959. Under his repressive leadership, China suffered economically. His two most significant innovations, the Great Leap Forward and the Cultural Revolution, were ill-conceived and led to the Great Famine and the deaths of 45 million people. The top-down economy failed.

After Mao’s death, Deng Xiaoping gradually rose to supreme power and led China through far-reaching market-economy reforms, earning him the reputation as the “Architect of Modern China.” Under Deng’s still-communist regime (1976-1993), China accepted some ideas about individual freedom by absorbing external influence. This brought the World Trade Organization and foreign investments to China.

Image: Henry Kissinger meets with Wang Yi. YouTube Screen grab.

From 1993 to 2003, Jiang Zemin was communist China’s President. Influenced by the Soviet Union, he was determined to preserve the CCP’s monopoly on political power while he continued the commitment to free-market economic reforms.

Hu Jintao was President of the PRC from 2003 to 2012. Hu was conservative and gradually re-introduced total state control in the economic sector that Deng and Jiang had relaxed.

From 1980 to 2018, China’s GDP grew substantially, especially once its economy was fully open to trading with the West. Even as repression crept back in, the economy had such strength it seemed unstoppable.

To compare it with India, in 2017 the value of China’s exports of high-technology products was 43 times higher than India’s. Historical GDP of China also reported, “China’s nominal GDP surpassed that of Italy in 2000, France in 2005, the United Kingdom in 2006, Germany in 2007, Japan in 2010 and that of the Eurozone in 2018.” During this period of economic growth, China left Taiwan alone.