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The article discusses about various issues related to the U.S. security policy on China. This discussion shows that, from China's perspective, the key to improving the U.S.-China relations is not stressing common interests in reality, but stressing China's long-term goodwill. The most important issue in the U.S.-China security relations is Taiwan issue. When dealing with Taiwan issue, China should also take into account how to influence the U.S. concerns about gains. The U.S., therefore, might adopt a more co-operative policy on China.

Although the essence of China's Taiwan policy has not changed from the era of Jiang Zemin to the present, the era of Hu Jintao, Jiang's and Hu's attitudes are different. Jiang was impatient with the delay in the unification of China and Taiwan, talking about timetables for unification; however, Hu has so far been patient, saying that he is not afraid of delaying unification. The purpose of this paper is to explain why their attitudes are different. I argue that two factors combine to result in Jiang's impatience and Hu's patience: conflicting ‘perceptions of Taiwan's domestic politics and Taiwan's China policy’ and differing ‘perceptions of the US behavior and attitude regarding Taiwan’. [ABSTRACT FROM PUBLISHER]

In Taiwan, economic marginalization has become a major concern that has resulted from the fast growing Chinese economy, imbalanced cross-strait economic and political relations, and a failure to participate in important international trade and financial organizations. Is a China-Taiwan policy cooperative mechanism the best choice for Taiwan's economic welfare? This paper is to measure Taiwan's economic marginalization by an international policy coordination approach instead of the conventional free trade agreements. We simulate macro-economic adjustments of Taiwan and its main economic partners (China and the US) according to the different institutional scenarios and economic shocks. The baseline simulation and sensitivity analyses imply that at the current stage policy coordination between China and Taiwan cannot come into effect without the US's participation. [ABSTRACT FROM AUTHOR]