President Chen Shui-bian said his recent adjustment of cross-strait policy to focus on "proactive management, effective liberalisation" was prompted by Taiwan's over-reliance on China in terms of trade and economic relations. He made the remarks while receiving Shin Hee Suk, president of South Korea's Asia-Pacific Policy Research Institute, and his wife at the Office of the President Jan. 6.
In response to Shin's query on the direction of Taiwan's diplomatic and cross-strait policies, Chen pointed out that nearly 70 percent of Taiwan's overseas investments are in China, placing the island in a vulnerable position.

He added that this overdependence on China was the reason he asserted in his New Year's Day address that economic and trade policy toward China must be modified by switching from the "proactive liberalisation, effective management" investment policy to what he termed in his speech a "proactive management, effective liberalisation" strategy.

The president stressed that China had not yet given up on the possibility of annexing Taiwan by force, which it demonstrated by passing its "anti-secession law." Chen also reiterated that any difference of opinion between Taiwan and China must be resolved with due regard to the principles of sovereignty, democracy, peace and parity.

Chen thanked Shin for his organisation's long-term commitment to ameliorating relations between Taiwan and South Korea. Chen said he had been looking forward to attending the 2005 APEC Informal Leaders Meeting in Busan in person, but that he was unable to make the trip due to pressure from Beijing.

Chen noted that Taiwan and South Korea have traditionally maintained close relations, and significant trade growth has been seen in the past couple of years. Two-way trade reached US$17 billion last year, with South Korea enjoying a trade surplus of US$6 billion with Taiwan.
The resumption of direct flights between Taiwan and South Korea in 2004 and the establishment of a representative office in Busan in 2005 both signified an improvement of relations between the two countries, Chen asserted.

Shin thanked Chen for receiving him and his wife and stressed that the two countries share many traits in common, including their democratic political systems as well as their historical and cultural backgrounds. Shin said he hoped Taiwan and South Korea would be able to cooperate even further in the future.