General Secretary Xi Jinping maneuvered the Chinese Communist Party (CCP) into removing term limits so that he can lead China indefinitely. Beijing has increased pressure on Taiwan, but also rolled out new measures aimed at increasing Taiwan’s economic and social integration with the mainland. On Taiwan, pro-independence elements continue pressing President Tsai Ing-wen. The passage of the Taiwan Travel Act (TTA), which was generally welcomed in Taipei, created a new US-China controversy. The appointment of John Bolton as national security advisor and the Trump administration’s tariff and technology actions against China have renewed fears in Taipei that Taiwan will become a bargaining chip or suffer collateral damage in a US-China confrontation.

Defying some predictions, the outcome of the 19^th National Congress of the Chinese Communist Party indicates there will be no significant change in Beijing’s policy toward Taiwan. Beijing will continue to demand that President Tsai Ing-wen accept the 1992 consensus and pressure on her administration will be sustained. In Taiwan, Tsai has supported domestic actions that Beijing fears are weakening cross-strait ties and her pro-independence supporters continue to press for steps that risk increasing tensions. Tsai has also urged Beijing to join in finding a new model for their relations. Beijing’s pressure on Taiwan is stimulating calls in Washington for policies that are more supportive of Taiwan. These developments in Taiwan and Washington have in turn triggered warnings from Beijing.

In the run-up to the 19^th Party Congress, Beijing has pursued an inflexible policy toward Taiwan, consistently blocking its international participation, establishing diplomatic relations with Panama, and conducting military exercises around Taiwan. Despite such pressures, President Tsai, whose priorities are domestic economic and social reform, has not changed her policy that neither accepts nor explicitly challenges Beijing’s one-China principle, and she has urged Beijing to join in seeking a new formula. With the US Congress expressing increased support for Taiwan, the Trump administration approved a new arms sales package and took other steps to improve ties with Taiwan. Beijing has warned Washington about closer ties with Taipei, raising the prospect that Taiwan will again become a divisive issue in US-China relations. In the absence of dialogue, unstable and risky cross-strait relations will continue in the months ahead.

In February, President Trump told President Xi Jinping that the US would honor its one-China policy. This eased concern that the new administration would radically change US policy toward Taiwan, but it remains unclear how the Trump administration will deal with specific Taiwan issues. Relations between Beijing and Taipei have continued to be in an unstable but calm state in the early months of 2017. The formal channels of dialogue remain closed and no significant effort has been made to reopen them. In the meantime, practical issues have been dealt with, sometimes constructively but often in ways that exacerbate the lack of trust. This unstable and risky situation will likely continue in the months ahead.

After President Tsai’s inauguration, Beijing continued to press her to accept the 1992 Consensus on one China. When China blocked ICAO from inviting Taipei in September, Tsai reacted sharply. In her “Double Ten” remarks, she reaffirmed her cross-strait policy and said she would neither give in to pressure nor return to past confrontational actions. In October, CCP General Secretary Xi Jinping made remarks implying Beijing’s understanding that Tsai would not endorse one China. The election of Donald Trump created in Taipei both hope of friendship from Republicans and concern Taipei could become a pawn in Trump’s bargaining with China. Trump’s tweets about his telephone conversation with Tsai and comments about one China and trade have sparked intense speculation and uncertainty about their implications for cross-strait and US relations with Taiwan and China.