The fight broke out after the Legislative speaker Wang Jin-pyng announced that the ECFA ratification bill will go on to the second reading, despite the opposition from the DPP. For about six minutes, lawmakers from both sides threw papers, water, and trash can at each other. Two legislators, the KMT’s Wu Yu-sheng, who was hit by a small clock, and the DPP’s Kuo Wen-chen, who was thrown off a podium, were hospitalized. A few others were injured after the clash.

The ECFA was signed between Taiwan and Mainland China last week as an unprecedented step towards reconciliation between the two. While the KMT believes that the agreement will boost the island’s economy, the DPP fears that it will undermine Taiwan’s de facto independence. The conflict over the issue has been expected since the DPP’s request for the article-by-article reviews and votes was rejected by the KMT, who insisted on one vote for the whole agreement package.

Taiwan lawmakers brawl over China trade pact [AFP , 9 July 2010]
Taiwan legislature clashes mark start of ECFA review [Taiwan News, 9 July 2010]

Under the ECFA, China agrees to cut tariffs on 539 items from Taiwan, valued at $13.8 billion, or about 16 percent of the island’s 2009 exports to the mainland. Likewise, Taiwan will cut tariffs on 267 items from China, which worth $2.86 billion, or about 10.5 percent of the country’s 2009 export to Taiwan. Moreover, the agreement will allow Taiwan investors access to mainland’s 11 service sectors, including banking, accounting, insurance and hospitals.

China Trade Pact Draws Taiwan Into Economic Embrace [Bloomberg Businessweek, 28 June 2010]
China, Taiwan pact today [Today, 29 June 2010]

This event happened three days after Taipei opened its new office in Beijing, being the first swap of its kind since the split of the two countries in 1949. Since 2008 and ever since Ma Ying-jeou came into power, there has been over 1 million tourists to Taiwan.

“This is a key development and milestone in exchanges across the Taiwan Strait,” Shao Qiwei, the head of the China National Tourism Administration, said at the opening ceremony.

China opens first office in Taiwan [AFP, 8 May 2010]
Taiwan opens first office in China to promote tourism [BBC,  4 May 2010]

The New York Times, however, was less optimistic, and stressed that the region still faces economic challenges, such as deflation in Japan, over-reliance on exports in Taiwan and others, and a real estate bubble in China.

Taiwan and Thailand gain from China growth [Financial Times]
Taiwan, Thailand exit global recession as Asia leads growth [BusinessWeek/Bloomberg]
Asia’s Boom Conceals Some Darker Prospects [New York Times]

China, backed by its growing economic power,  has adopted an increasingly muscular stance towards the West, most notably visible through its reticience at the UN Climate Change Conference in Copenhagen and its encumbrance of the UN Security Council negotiations over Iran sanctions.

Now, however, the U.S. is pushing back. The weapons sales coincided with some public criticism by Secretary of State Hillary Clinton of China’s stance on Iran. Recently, the U.S. has also been vocal in championing Internet freedom.

Last summer, in a row over Chinese dumping of tyres, China loudly announced investigations into imports of several U.S. products, but the actual sanctions eventually levied were minor. The actual significance of the current falling out remains to be seen.

Sources:

Keith Bradsher, “China Threatens Sanctions in Fallout Over Taiwan,” New York Times, January 30, 2010, http://www.nytimes.com/2010/01/31/world/asia/31china.html?ref=asia

Helen Cooper, “U.S. Starts to Push Back Against China in Growing Rift,” New York Times, January 31, 2010, http://www.nytimes.com/2010/02/01/world/asia/01china.html?ref=asia

The talks are the fourth since relations between the two sides began to markedly improve in 2008.

Though cross-Straits relations had improved consistently for some time, domestic pressure in Taiwan has mounted in recent weeks. An incident where a Taiwanese official called independence-supporters “idiots” has reignited debate within Taiwan.

The official agenda for this round of talks will be avoidance of double taxation, inspection of farming produce, fisheries cooperation and industry standards certification.

Source: AFP (hosted by Channel NewsAsia), “Taiwan, China set talks for Dec 21 to 23″, December 10, 2009, http://www.channelnewsasia.com/stories/afp_asiapacific/view/1023881/1/.html