Even though the report is fairly cautious in what it says and does not highlight anything new, the reactions on the Chinese side have not been that positive.

While the economies of China and Taiwan are getting integrated and there has been increasing contact between the people across the strait, the two sides are maintaining a studied silence on unification.

The fundamental ideological difference between the KMT and DPP supporters makes the debate on ECFA more complicated than it needs to be actually, with a peculiar intermix of politics and economics.

China’s missile defence test could possibly up the ante in the region, with other regional powers considering measures in reaction.

If current developments are any indicator, the long road to economic integration on either side of the Taiwan Straits has commenced. In a first of its kind, a sixty member delegation led by Chen Yunlin, Chairman of the Association for Relations Across the Taiwan Straits (ARATS) visited Taiwan from November 3-7, 2008 to hold talks with his counterpart Chiang Pin-kung, Chairman of the Straits Exchange Foundation (SEF). ARATS and SEF are two non-governmental organisations authorised by China and Taiwan in the early 1990s to examine the entire gamut of cross-Strait relations.

Will Taiwan ever participate in the United Nations? Pessimist views have started flowing after the rejection of Taiwan’s fresh bid for ‘meaningful participation in international agencies’ at the UN on September 18, 2008. This proposal was submitted by sixteen “diplomatic allies” of Taiwan to the UN Secretariat on August 14, 2008. Blocking Taiwan’s new attempt, a UN subcommittee decided that it would not let the 63rd UN General Assembly (UNGA) consider their request for permission to join ‘UN activities’.

Encouraging developments on either side of the Taiwan Straits have taken place recently, considerably reducing the ‘shrill atmospherics’ surrounding ‘independence’ and ‘invasion’ by several notches. The primary determinant driving these developments has undoubtedly been the Kuomintang’s (KMT) coming to power in the legislative elections held in March 2008.

The KMT’s victory in the March 2008 presidential elections can be essentially attributed to the promises it made to improve economic ties with Mainland China and assure good governance. Ironically, these were partly the same promises that had brought the DPP (Democratic Progressive Party) to power in the historic 2000 presidential election. There was no element of surprise to the election results in which Ma Ying-Jeou defeated his DPP counterpart Frank Hsieh. The KMT’s victory does not mean that Taiwan will begin supporting unification with the Mainland.