China's sharp response to Lee's visit to the United States also reflected a major change in its Taiwan policy, which will be discussed in this chapter. The rationale for the change will be presented in Part IV.

Rising Nationalism and Domestic Politics

To the Chinese, at least the Chinese on the mainland, the Taiwan issue is a very emotional one because it touches upon the bitter memory of 150 years of humiliation by the West and 100 years by Japan. They can agree to the “one country, two systems” formula for Taiwan, accept Taiwan's status quo as such for the time being, and may even endorse the Taiwan model of democracy in future if it is proved to be successful. However, they cannot accept Taiwan's independence, which in their eyes is tantamount to Taiwan being “snatched away” by foreign powers as it once was. China has lost a lot of territory over the last 150 years. This territory was ceded to foreign powers in formal treaties, mostly following China's military defeats. No matter how the Chinese now feel about these treaties, they have to accept them as historical facts, as well as accept their consequences, such as the current China–Russian border and Mongolia's independent status. However, Taiwan is different. To the Chinese, it has been returned to China by formal international declarations and they will not accept its independence without a good fight.

With this background, no leader in China will accept the independence of Taiwan, both because of the national interest and their own political survival. The leadership in China today derives its reputation and legitimacy to rule largely from its success in terms of domestic economic reform and reunification. Mao Zedong became modern China's founding father by liberating it. Deng Xiaoping was supported by the Chinese because of his role in saving China from the political chaos of the Cultural Revolution, in opening China to the outside world for its economic modernization and in seeing to the return of Hong Kong and Macao to China.