This week marks the second anniversary of Ma Ying-jeou’s victory in the 2008 Taiwanese presidential election. In the period since Ma’s inauguration relations between Taiwan and China have improved markedly. There are clear signs that the two parties are taking small but vital steps towards a sustained peace. This Policy Analysis considers these steps and looks out to the 2012 presidential election where signs of success in Taiwan’s economic relationship with China and its further participation in international diplomacy are Ma’s best chance of retaining office.

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