Elected in March 2000 with 39% of the popular vote, (1) Taiwan President Chen Shui-bian hassince faced an uncooperative legislature and has endeavored to establish a firm grip on his government. The congressional staff delegation observed severalimportant features of Taiwan's "transition politics." (2)
There are no firm indications about how Taiwan's political parties will fare in the December 2001 legislative elections, although no party is expected to attain amajority in the Legislative Yuan. Some American and Taiwanese economic analysts viewed China as the key to Taiwan's continueddevelopment. (10)
Research Trip Findings. Despite the uncertain and often tense political atmosphere, cross-strait economic ties have grownconsiderably since the late 1980s. Inthe first half of 2000, cross-strait trade increased29%. Implications for U.S. Policy

Two trends have helped to stabilize PRC-Taiwan relations in the short term. Other factors may add to tensions in the future.
This report summarizes findings from a congressional staff trip to Taiwan (Republicof China), December 10-17,2000, with supplemental material from other sources. The staff delegation met with Taiwan government andmilitary officials, political party representatives,leading private citizens, and United States officials and business persons in Taipei, the capital. The findings includemajor factors that have shaped relationsbetween Taiwan and the People's Republic of China (PRC) since Chen Shui-bian's election as President of Taiwanin March 2000. Taiwan's democratization andthe growth of cross-strait economic ties have, in some respects, helped to stabilize relations in the short run. Taiwan's legislative elections in December 2001 willlikely focus largely on domestic issues; its impact on cross-strait relations is uncertain. Chinese nationalism andmilitary modernization in the PRC will likelycontinue to contribute to tensions. This report will not be updated.