President-elect Ma Ying-jeou (馬英九) has expressed grave concern over the impact of the Papua New Guinea (PNG) diplomatic scandal on Taiwan's reputation. He pledged to adopt a pragmatic and open approach to developing diplomatic ties.
To avoid the Democratic Progressive Party (DPP) government’s mistake of using brokers to lure PNG into establishing relations, Ma said his administration would prioritize negotiations with China on economic and cultural exchanges, a peace agreement and protection of Taiwan’s international space as part of efforts to develop international relations.
He said that “Diplomacy is the art of the possible ... The possibility of advancing Taiwan’s diplomatic relations is limited, but we may be able to break new ground by combining diplomacy with cross-strait relations.”
The PNG diplomatic setback serves as a cruel lesson for both the outgoing DPP and the incoming Chinese Nationalist Party (KMT) on whether Taiwan should or could renounce the use of dollar diplomacy.
Before the DPP came to power in 2000, President Chen Shui-bian (陳水扁) supported an overhaul of the KMT’s longstanding strategy of dollar diplomacy. He also suggested that the importance of the number of diplomatic allies was overstated.
Nevertheless, foreign policy has its own consistency and continuity. Chen’s administration continued the KMT’s practices with only minor adjustments. Using “brokers” to expand Taiwan’s limited international presence was one of these.
Now the Ma administration seems about to reverse this trend and place all bets on the improvement of cross-strait relations as the key to a diplomatic truce.
Is this goal achievable, and at what cost? Will China recognize the need for a diplomatic ceasefire? Ma would be indulging in wishful thinking if he thought so.
Rather, Ma needs to come up with a new foreign policy agenda in the South Pacific to rebuild Taiwan’s image in the region and redirect its aid programs.
Taiwan has six allies in the region. Diplomatic competition in the region appears to be evenly balanced, and this causes tremendous concern in countries such as Australia and New Zealand.
In a region of strategic significance and complicated geography, Beijing has reached out and exerted increasing influence through more frequent state visits and larger aid programs.
Because China is constantly trying to steal allies, it is imperative that Taiwan engage in diplomatic efforts to consolidate its diplomatic relations. Countering Beijing’s initiatives to broaden international influence and expand the “one China” principle will require frequent trips to the region by Taiwan’s president.
The next government should develop strategies extending its diplomatic influence in the South Pacific through provision of humanitarian aid, inculcation of good governance, regular consultation with regional powers and, most importantly, transforming its diplomatic methods.
It is a shame to see the DPP government failing to overcome the dollar diplomacy that it inherited from the KMT.
If the Ma administration is determined to reshape foreign policy, it needs clearer guidelines from the top to frontline diplomats on how to deal with their rivals.
Local media have reported that Ma has decided to make his first state visit to the nation’s diplomatic allies in Central America on Aug. 12, with stopovers in New York and Washington.
Will Beijing then cease pressuring the US on presidential stopovers? How would Ma react to Chinese obstruction and humiliation on his very first overseas tour?
Can he strike a balance between improving cross-strait relations and pursuing a diplomatic truce?
Liu Shih-chung is a Taipei-based political commentator.
When Panama severed diplomatic relations with Taiwan and recognized China in 2017, Beijing achieved one of its most important diplomatic victories in Central America. However, nearly a decade later, Panama is demonstrating that diplomatic recognition does not necessarily eliminate Taiwan from a country’s political system. Panama and Taiwan had diplomatic relations for more than 100 years and the goodwill between the countries was displayed last week when Panama’s National Assembly established an interparliamentary exchange group with the Legislative Yuan. Forty-five of the assembly’s 71 lawmakers joined the group, representing more than 60 percent of the legislature. Its members include National Assembly President Shirley
Ten years ago, when I was an undergraduate at National Chung Hsing University (NCHU), there was a referendum on whether to remove a statue of Chiang Kai-shek (蔣介石) from the campus. I wrote to the Liberty Times (the Taipei Times’ sister newspaper) urging faculty, staff and students to vote for its removal. Eventually, the statue was removed from the university. Today, I am filled with emotion at seeing students at Soochow University democratically remove their own statue of Chiang, a figure of authoritarian rule, after it was on display for 48 years The timing is noteworthy, with the nine-in-one local elections approaching.
Beijing has for decades insisted that Taiwan is a matter to be settled between China and the US — or, preferably, by China alone. The strategic environment around Taiwan is making that increasingly difficult. The clearest evidence this week came not from Washington or Beijing, but from Tokyo. Japanese Prime Minister Sanae Takaichi on Tuesday met with US President Donald Trump before his summit with Chinese President Xi Jinping (習近平). Taiwan is expected to feature prominently in US-China talks, particularly as Beijing presses Washington over arms sales to Taipei. However, focusing only on what Trump might or might not concede misses the
If Taiwan falls, the true battle moves from the beaches into the concrete streets. Western analysts fixate on the invasion phase. They end wargames when missiles stop flying and submit policy papers after the fate of a beachhead is decided. This narrow focus ignores the grim reality of “the day after.” To address this blind spot, the Irregular Warfare Center (IWC) published a seminal study on March 5, 2026, titled China’s Way of Occupation: Implications for Taiwan. Authored by Jan K. Gleiman and others, the report analyzes Beijing’s actions in Tibet, Xinjiang (East Turkestan), and Hong Kong to expose a chilling playbook