2 46 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation countriescanimprovetheirnaturalresourcesector , whilestrengtheningknow howandinnovation.IfLatinAmericancountriescandoso , ChinaandLatin Americacanavoidcompetitioninmanufacturingindustrieswhilebeingpartners inbuildingaknowledgeeconomy.Ifwelookfurtherintothefuture , strong ChinaLatinAmericaneconomicrelationswillbeapositivefactorinahealthyand balancedinternationaleconomicsystem. 3.2 TheTaiwanIssue TaiwanisasensitiveissueincurrentandfutureSinoLatin American relations.Firstofall , mostcountriesinLatinAmericaadheretoa “ OneChina policy ”, whichisthe mainstream policystance.Taiwaninthepasttook advantage of “ chequebook diplomacy ”, FTA negotiations and loans to consolidate “ diplomaticrelations ” withthe Caribbean , Central Americaand Paraguay , respectively.Theabsenceofformaldiplomaticrelationswiththese countriestosomeextentprevents Chinafrom developingacomprehensive regionalrelationship.Recently , thetwosidesdivided bythe Taiwan Strait achievedacommonpolicyframeworkofpeacefuldevelopment , andculturaland economicintegrationarebeingdevelopedrapidly.Withinthepolicyframework ofpeacefuldevelopmentforcrossStraitrelations , Beijing willcontinueto developnormalcommercialandculturalrelationswiththosecountrieswithwhich itdoesnothavediplomaticrelations.Consideringtheneedsof Taiwans economicdevelopmentandthepracticalinterestsofTaiwanscompatriots , the Chinesegovernment will not objectto these countries maintaining non governmentalculturalandeconomictieswithTaiwan. Againstthisbackground , Taiwansleaderscameup withtheideaofa diplomatictruce , to whichthe mainlanddidnotreactdirectly , althoughthe strivingfordiplomaticrelationsin Latin Americaclearly decreased.Itis thereforefairtosaythatthepolicyadjustmenthasdeepenedeconomicintegration acrossthe TaiwanStraitandhas madecompetitionlessintensivein Latin America.Meanwhile , Chinasbasicstanceon Taiwan willneverchange , regardlessofthesocalleddiplomatictruce.Doublerecognitionofbothsides acrosstheTaiwanStraitisnotanacceptableoptiontoChina.TheChinese governmentdeclaredin2008thatChinais “ willingtoestablishanddevelopstate tostaterelationswiththecountriesinLatinAmericaonthebasisoftheOne Chinaprinciple ” initsfirstpolicypaperonLatinAmericaandtheCaribbean ( ChineseGovernment2008 ) . Assomeresearchershaveobserved , thefactthatamajorityofthecountries thatstillrecogniseTaiwanarelocatedintheAmericasreflectsthesphereof
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