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The article looks at the future of cross-strait relations after the election of fourth-generation leaders in China in 2002. It cites that China has adopted a cool dealing strategy toward Taiwan after Chen Sui-bian was elected President in 2002 and condemned the defensive referendum proposed by the president. It argues that maintaining status quo in Taiwan Strait is the key to pursue the stability and peace in the strait. It explains the factors that resulted to the conflict in Taiwan Strait and the role played by the U.S. concerning the issue.