Here's an excellent article that fills in a lot of blanks on this topic:
http://www.zmag.org/content/showarticle.cfm?SectionID=103&ItemID=7446
This conflict was initially a result of the cold war. This is why the US fought in Vietnam and Korea, and why we support Taiwan. HOWEVER, this has become an economic conflict. China is threatening the US's position as ruler of the world. The ruler of the world is no longer the one with military superiority. The nuclear stalmate has negated that. No, the ruler of the world controls the money. Taiwan is purely symbolic and is China's attempt to show the world who's boss. Believe it or not, so is the Beijing Olympics in 2008.
I don't believe that China is interested in dominating the world physically like Hitler did back in the 30's. They also are not interested in dictating to the world their socio-economic policies on the rest of the world like the Soviet Union during most of the 20th century. If you study Chinese history, you will find that China is a very introverted culture. They feel that the have a very unique culture and don't like to be influenced by outsiders. Their "One-China Policy" is an off-shoot of this ideology. That's why they built the Great Wall of China.
Now the interesting thing here is that the Chinese Communist Government, over time, has come to realize that in order for their version of a utopian society to succeed and be sustained, they have to give their people what they want. What do the Chinese people want? The same things we all want. The opportunity to be land-owners. The ability to choose where we live, what we buy and to live a comfortable life-style of our choosing. Everybody is willing to give up
some freedoms to obtain these things. Do you think the majority of Chinese people give a shit who their politicians are. As long as they have the opportunity to drive a nice car, watch cable TV, and buy an Ipod, they really don't give a fuck that their elections consist of one party politicians. Hell, it's the same thing in the US. The US has the lowest voter turn-out rate of any country that has so-called "free" elections and we essentially have a one-party system too. Is there really any difference between Democrats and Republicans or between George W. and John Kerry? The Chinese have done something that Communist USSR and Capitalist USA have not be able to do. They have been able to combine the govenmental control of Communism with the freedom of choice of Capitalism. They have created a stable middle-class.
Communism denied choice and tried to make everyone equal; no land-ownership, no middle-class. The capitalist US was able to create a relavent middle-class. However, the natural evolution of a capitalist society where the economy is driven by the basic tenants of supply & demand is now starting to crumble. What good does it do me to walk into any one of a half-dozen 100,000 square foot grocery stores that are in my town and have a choice of over a dozen types of toilet paper when I've been out of work for two years because my job has been outsourced to India where people do the same job for 1/10th of what I was getting paid to do (no, this hasn't actually happened to me, but to a lot of other people I know).
The deathnell to America's position as a economic superpower is Wal-Mart. Stick with me on this. Here in the US, who hasn't seen the proliferation of Wal-Mart and Home Depot? These super big box stores are stocked with almost every product imaginable. Great, these stores give me thousands of choices at the lowest price. But what is this really doing. The thousands of Wal-Marts stores allows the company to purchase products at a lower wholesale price through greater quantities and they then turn around and can offer a lower retail price. This eventually puts their competitors out of business. This in turn puts people out of work. Now Wal-Mart tends to stock a lot of Made-in-the-USA products, but a lot are also foreign-made. This does two things. Their purchase of large quantities of foreign-made consumer goods puts more pressure on US manufacturers and this results in layoff as these companies try to stay competitive. This also causes the US to import more products than they export. As more and more Americans become unemployed or are forced to take lower paying jobs, the middle-class shrinks and these big box Wal-Marts and Home Depots will start to close up as the population based with the disposable income to maintain these stores shrinks.
O.kay, this brings us back to Taiwan. The US has it's largest trade deficit ever. China has a trade surplus. If China is allowed to absorb Taiwan and it's economy, it can potentially alter the balance of power between China and the US and displace the US as the global economic dictator and no longer allow the US to be the "Master of it's Own Domain", so to speak.
Here's another article that provides more info on this:
Taiwan decries new law as China warns U.S.
By TIM JOHNSON
Knight Ridder Newspapers
BEIJING - Angry Taiwanese lawmakers burned China's flag in protest Monday, and the island denounced a new anti-secession law in Beijing as a "serious provocation"; Chinese Premier Wen Jiabao, meanwhile, warned the United States to stay on the sidelines of the dispute.
Cabinet spokesman Cho Jung-tai, an aide to Taiwanese President Chen Shui-bian, called the new law "tantamount to an authorization of war." The law sets conditions for launching a military attack to pull the independently governed island under China's wing by force.
Politicians in Taipei made plans to put as many as a million demonstrators on the streets March 26 to protest the law, a tactic taken from the playbook of pro-democracy activists in Hong Kong who have been a thorn in Beijing's side.
At a once-a-year news conference, Wen described the anti-secession law approved earlier in the day by the National People's Congress as "by no means a war bill." He said China would strive to ensure that no fighting broke out along the Taiwan Strait.
"So long as there is a ray of hope, we will do our utmost to promote a peaceful reunification," he said.
In an expression of China's growing military confidence, Wen, nonetheless, warned the United States to stay out of the dispute over Taiwan, indicating that China no longer may fear the United States militarily.
The Bush administration expressed concern Monday about the law.
"We do view the adoption of the anti-
secession law as something that is unfortunate and not helpful to encouraging peace and stability in the Taiwan Strait," White House spokesman Scott McClellan said. "We don't believe anyone should be taking unilateral steps or make unilateral changes that increase tensions."
Richard Boucher, State Department spokesman, said Secretary of State Condoleezza Rice planned to discuss the new law with Chinese officials when she stopped in China later this week.
China claims Taiwan is a renegade province, and it fears that letting the island out of its grasp could spark secession drives in other regions, such as Tibet, and weaken the legitimacy of the ruling Communist Party.
Taiwan, an island of 23 million people with nearly 13 times greater per-capita income than the mainland, has governed itself for more than five decades and says it already is a sovereign country. A statement issued Monday by Taipei's Mainland Affairs Council called Beijing's contention that the two sides belong to "one China" a fiction.
The United States has sold Taiwan billions of dollars in armaments in recent decades and is obligated by Congress under the 1979 Taiwan Relations Act to help the island defend itself. Washington has urged both sides to resolve their differences peacefully.
-end of article-
History has shown that empires do not last forever. Could this situation over Taiwan signal the beginning of the end of the American empire?