Inside Report (3)

One of mainland China's biggest new trade partners is . . . Taiwan. Taiwan officials don't know just what to make of it. It's probably good propaganda, of course, to show the world, and the Chinese Communists, that Taiwan turns out lots of high-quality goods. But it could also give the impression that Taiwan is weakening in its long-term resolve never to negotiate reunification with Peking.

There's also an economic danger. Peking is taking exports of Taiwan textile yarns and turning them into cheap clothing for export. And that's one of Taiwan's own prime exports.m