Kuwait Times

The Taiwan ruling party's choice of Frank Hsieh as its candidate for the 2008 presidential election could bring a thaw in relations with Beijing and undermine the pro-independence tilt represented by the island's current leader. Analysts said Hsieh favours engagement with China and will try to distance himself from President Chen Shui-bian, whose rhetoric has made Beijing deeply suspicious of the Democratic Progressive Party (DPP). China regards self-ruled Taiwan as a renegade province and has threatened to use force to reclaim it.

"Hsieh has always had a more conciliatory approach towards China," said Chih-cheng Lo, a political professor at Soochow University in Taiwan. "There is no doubt that Chen Shui-bian has become a lame duck. After Sunday's vote, we can say that Hsieh has emerged as the winner, while Chen has become the loser." Hsieh won the first phase of the party's primary on Sunday, beating hot favourite Premier Su Tseng-chang, who political observers say was backed by Chen.

The party then scrapped the second phase, which would have hinged on opinion polls soundings, handing Hsieh an unexpected victory. When Hsieh was Taiwan's premier from February 2005 to January 2006, he called for broadening trade ties with China, including direct air links, to help businesses save costs. His views put him at odds Chen and helped lead to his resignation as premier, but they could now work in his favour.

"Hsieh's pragmatic approach to cross-strait relations may also boost his chances, as Taiwanese have time and again shown they prefer maintaining the "status quo" when it comes to relations with China," the Taipei Times said in an editorial. Despite the political differences, China is Taiwan's top trading partner and a favourite investment destination for the island's companies, with businessmen pouring in more than $100 billion since the 1980s.

Since Chen took office in 2000, he has riled Beijing by abolishing a council on eventual reunification with the mainland and suggesting a tougher policy towards investments in China. China has thus refused to deal with Chen's administration. The presidency is the most powerful position in Taiwan and decides the tone of overall policy towards China. Analysts said the DPP's choice of candidate signalled that Chen's power was waning as his administration, for months plagued by corruption scandals surrounding his family and aides, comes to an end. He was elected president in 2000 and 2004 and is restricted by the constitution from running for a third term.

Hsieh, who was once mayor of the southern port city of Kaohsiung, will run in next March's presidential vote against the main opposition Kuomintang's (KMT's) Ma Ying-jeou, a former Taipei mayor and widely seen as the frontrunner in the election. The KMT, or Nationalist Party, is viewed as more friendly towards China. "Markets had been quite optimistic no matter Hsieh or Ma wins because both have, in the past, favoured improved trade ties with China," said Lucas Lee, an economist at Mega Securities. "But we'll still have to see whether Hsieh will change his stand to please certain factions within the ruling party." - Reuters