Large military exercises in the PRC were reported about a week before, but they had been termed routine by both the Ministry of National Defense spokesman in Taipei and the government in Washington. Statements relative to cross-strait relations on both sides were equally routine. Stalemate means no progress, but also no deterioration. There was what could be called a normal level of tension between the two sides. On arrival in Taiwan, however, after a couple of days reading the press and watching the news on TV, one would have to conclude that the situation was radically different than similar sources in Washington were reporting.
Lets start with the economy.
Some were debating that the nuclear power plant issue was not about economics but about ideology, and others the reverse. Complaints that government did not have any plans to show where it wanted the economy to go did not seem to be challenged. That the stock market was dropping precipitously because of a lack of confidence or mismanagement of the stabilization fund was only weakly challenged. But an example of overkill on this issue came after watching the press conference on Oct. 14, when the premier announced the actions the administration would take to cope with the economic situation, and the inevitable instant analysis by experts that followed. I kept hearing references to the impact these actions would have on cross-strait relations, which puzzled me.