Federation for China and Taiwan?

In the long run, the most crucial factor determining the ultimate outcome of the unity issue is sustained progress in the mainland, both economically and politically. A progressive and prosperous mainland China will change all the dynamics in the cross-strait relations. Happily, by now, mainland China is entering a new era of deepening institutional and political reforms, besides possible new rounds of economic advancement. This will fundamentally enhance a peaceful resolution of the unity issue. At the same time, the choices to bring about unity are also vast. They include the choice of a new federation for China, for example. As a matter of fact, it is the best choice on the table.

Why federation?

The central concern is that the island's government is afraid to become a "local government" under a central government from Beijing. Instead, it wishes to maintain itself as an independent political centre, having all  possible autonomy. It wishes to keep its independent government body, military, currency and judicial systems, among other things. In short, it does not intend to be subject to a higher central power.

For Beijing, the concern is more about political unity. It has become very pragmatic in its thinking and dealings. In its mind, anything can be and should be discussed provided that there is one China. This position of Beijing means that it has walked out on the traditional mentality that a unified China must be governed under one centralised government. This change in mentality and policy lays down the very political foundation for a federation.

Already, Hong Kong's and Macau's returns to China are exemplary. The situation is different to the United States federal system, for example. In the US, the governor of New York State is elected by the state's residents and his actions are independent of the central government in Washington, DC. However, federal law overrides state and local statutes. Financially, the central government levies a federal tax on New York residents. But in both Hong Kong and Macau, Beijing does not have tax claims over those residents living in those self-governed cities, though politically, Beijing remains as the central authority.

However, the goodwill of Beijing goes far beyond the degree of autonomy for Hong Kong and Macau - as far as the special case of Taiwan is concerned. Indeed, Beijing's position is that Taiwan can gain much more autonomy in the future. For a long time, Beijing has been proposing that the island maintain its government and key institutions. Its political leadership would not be subject to Beijing. Both political entities would be subject only to a "federation" law. Anything could be discussed under the "one China" principle. So, China has already moved towards a federation, though Beijing has not used the word "federation".

This "federal" approach is revolutionary for China, as it has never happened before. It means that a unified China can have more than one political centre. Indeed, Taipei will become another political centre under a federation. Gaining multiple political centres would certainly be new to all Chinese. But this is demanded by the current realities and it is the best possible resolution to accommodate the needs of the various political entities.

Would this federal alterative do Taiwan any good? It certainly would. Above all, it gets rid of all unwanted political tensions and offers all the opportunities for Taiwan. In short, the island's political establishment would gain all the advantages, while keeping all its existing positive institutions and ways in a federation. Otherwise, continued cross-strait tensions will cause unnecessary damage, even catastrophic damage, if they escalate.

Hostility toward mainland China with 1.3 billion Chinese would be most irrational as well as unacceptable to all Chinese around globe. But a change in mentality as well as approach would open the doors to a better world.

Above all, they are all Chinese, separated only by an unfinished business of a painful civil war. Now, the Chinese people have all the opportunities to move forward creatively and productively. It means a peaceful unification for the Chinese people living on both sides of the Taiwan Strait. It removes all the elements for political tensions and the unwanted consequences. Both sides will benefit directly from peaceful unity. This great prospect of a federal alternative has emerged at this time.

The rational resolution of the cross-strait tension will enhance global peace and progress, not just for China. For many decades, and even centuries, the Taiwan issue has been a key de-stabilising factor for East Asia and beyond. A peaceful and progressive outcome would bring benefits to the entire world. So, therefore, the outside world has every reason to be supportive and constructive in promoting this federation concept.