This has been a year of challenges in U.S.-Taiwan relations, dominated by continuing friction over a range of politically-driven initiatives by the Chen Shui-bian government – initiatives that not only aggravated internal divisiveness but also irritated and alienated Washington. The past year saw the process of political consolidation within the two major political coalitions in Taiwan, with the resultant new alignment put to the test in the January 12, 2008 Legislative Yuan elections. Of course, 2007 has also seen some long overdue breakthroughs on the defense budget front, with both the passage of funding for the three major arms procurement programs and an increase in the annual defense budget to a little less than 3% of Taiwan’s GDP.
This annual analysis report provides a brief overview of significant developments in 2007, while examining some of the more systemic factors that influenced the course of events during the past year. The analysis will also look ahead and attempt to gauge the likely impact of both the LY election and the upcoming March 2008 presidential polls on national security affairs.
Executive Summary: Taiwan Defense & Security Report – Annual Review, 2007