Taiwan is rated the second most stable economy in Asia for business in 1998, according to the Hong Kong-based Political and Economic Risk Consultancy Ltd. [PERC], reports the China News Agency. Out of the twelve Asian nations rated in the survey, Singapore is considered the most socially stable Asian economy, with Taiwan tied with Japan for second. China is in seventh place, slightly ahead of India and Thailand. PERC officials said that despite rising unemployment, Taiwan has come through the regional economic crisis relatively unscathed socially, making it the region's most competitive economy, largely related to the republic's democratic development.

During the October 14-18 "cross strait dialogue" in Beijing, the delegation from Taiwan repeatedly raised the "d" word with Chinese officials, insisting that democracy was the only path forward for China's modernization, the Far Eastern Economic Review reports. Without democracy, the Taiwanese told their hosts, there could be no stable society and no healthy economy. Following a 90 minute meeting with Chinese leader Jiang Zemin, Taiwan negotiator Koo Chen-fu told reporters, "Only when mainland Chinese have achieved democracy [including competitive party politics] can the two sides of the Taiwan Strait talk about unification."

Chinese Vice-Premier Qan Quichen expressed the mainland's hard line, dismissing the notion that China needed to implement multi-party democracy, calling 'Taiwan-style' democracy "obviously impractical." Qan's remarks, broadcast on Taiwan television, set off strong public reaction. A Gallup poll found increased popular distrust of Beijing, with only 5 percent of Taiwanese polled agreeing with Beijing's "one China" definition. Newspaper editor George Kuo, said, "Taiwan has one of the strongest economies in the world and we need our international space."

U.S. Under Secretary of Commerce David Aaron criticized China's "hidden devaluation" of its currency through export subsidies that is undercutting its neighbors' economies, and for failing to lead the region towards recovery, reports the South China Morning Post. "We are concerned," Aaron said, "that China's aggressive use of export subsidies will make its products more price competitive than those of other Asian countries and crowd out exports of China's Asian competitors - exports that the countries of Southeast Asia need to boost economic recovery." Aaron said that China has a key role to play alongside Japan in leading the region towards recovery but was failing to live up to this role by refusing to liberalize its trade regime quickly enough.

China's authorities in Sichauan province have detained six dissidents for trying to open a branch of the China Democracy Party [CDP], reports Deutche Presse-Agentur. Also, police in Chongqing municipality have detained Deng Huangwu for planning to stage a protest at the Public Security Bureau over the detention of four organizers of the CDP. In addition, 16 dissidents, led by We Xenli, have sent an open letter to the Chinese government requesting medical parole for prominent dissident Liu Nianchun, whose health is deteriorating in a Beijing labor camp.

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All Rights Reserved.

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