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China, the EU and Latin America : current issues and future cooperation
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46 China theEUandLatinAmerica:CurrentIssuesandFutureCooperation countriescanimprovetheirnaturalresourcesector whilestrengtheningknow howandinnovation.IfLatinAmericancountriescandoso ChinaandLatin Americacanavoidcompetitioninmanufacturingindustrieswhilebeingpartners inbuildingaknowledgeeconomy.Ifwelookfurtherintothefuture strong ChinaLatinAmericaneconomicrelationswillbeapositivefactorinahealthyand balancedinternationaleconomicsystem. 3.2 TheTaiwanIssue TaiwanisasensitiveissueincurrentandfutureSinoLatin 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 ofpeacefuldevelopmentforcrossStraitrelations Beijing willcontinueto developnormalcommercialandculturalrelationswiththosecountrieswithwhich itdoesnothavediplomaticrelations.Consideringtheneedsof Taiwans economicdevelopmentandthepracticalinterestsofTaiwanscompatriots the Chinesegovernment will not objectto these countries maintaining non governmentalculturalandeconomictieswithTaiwan. Againstthisbackground Taiwansleaderscameup withtheideaofa diplomatictruce to whichthe mainlanddidnotreactdirectly althoughthe strivingfordiplomaticrelationsin Latin Americaclearly decreased.Itis thereforefairtosaythatthepolicyadjustmenthasdeepenedeconomicintegration acrossthe TaiwanStraitandhas madecompetitionlessintensivein Latin America.Meanwhile Chinasbasicstanceon Taiwan willneverchange regardlessofthesocalleddiplomatictruce.Doublerecognitionofbothsides acrosstheTaiwanStraitisnotanacceptableoptiontoChina.TheChinese governmentdeclaredin2008thatChinais willingtoestablishanddevelopstate tostaterelationswiththecountriesinLatinAmericaonthebasisoftheOne Chinaprinciple initsfirstpolicypaperonLatinAmericaandtheCaribbean ChineseGovernment2008 Assomeresearchershaveobserved thefactthatamajorityofthecountries thatstillrecogniseTaiwanarelocatedintheAmericasreflectsthesphereof