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Shortly thereafter, all parties withdrew. Chiang Kai Shek's forces made their way to Taiwan and had a peaceful interval to
establish a local government. From a historical perspective, the dynastic Chinese Central Governments tolerated local independence
provided this did not lead to separatism. It was not unusual for warlords to establish and run local governments in all
Chinese provinces. In fact, this is one of the obstacles faced by Communist lead government in Beijing today in its efforts
to unify and modernize the country, a task that was accomplished in the West as part of the introduction of capitalism that needed central direction.
Thus began the split of a Chinese province from political directives of the Central Government with a distinct intent of separation.
In ancient times, such extremes were not tolerated. On again, off again maneuvers by the Kuomintang and Western powers contemplating
separation from its history as an integral part of China continued throughout the second half of the 20th century. From a historic
perspective, remnants of tolerance for local deviations by warlords remains an impediment to economic unification of China to this very day.
It is expressed in the corruption of local Communist leaders who deviate from directives reflected of the central government and are
now the number one problem in testing the capability of the Beijing government to rule. This was the main subject at the recent Plenaries
of the Communist Party in October and November 2004.
Two years later the United Nations was formally established as a center for compromise between two worlds and the very same year Churchill,
at the behest of the right wing in the USA, enunciated the beginning of the Cold War in Fulton, Missouri. Having accomplished this
compromise mechanism between two social systems, capitalists termed "free world" and socialist termed variously from "new world" to
"proletarian." The PRC, under the leadership of Mao Zedong, followed basic centralized command structure of the USSR. The explosion of
a hydrogen bomb by the USSR established a balance of terror in a divided world. The Soviet Union assisted the beginning of Chinese
industrialization - except for sharing knowledge of nuclear power. On the other hand, Mao insisted that China would not be a "junior partner"
in a socialist alliance. This led to a split in 1957, followed by twenty years of floundering and searching for direction through the
so-called "Great Leap Forward" and the ten-year "Cultural Revolution." As Mao deteriorated, a Gang of Four (which included his wife)
sought to perpetuate the turmoil but was* defeated after a sharp struggle registered for history on "a democracy wall" led by Chou En-lai
and leaders he had saved like Deng Xiaoping. After Mao's death, Chou En-lai, in 1975 (his last year), proposed a new road
for China's socialist development, debated in 1976 and established as policy direction in 1978 - a turning point in Chinese and,
I dare say, in world history.
Essentially the new direction entailed modernization of its means of production and the establishment of market relations on the
assumption that it would be regulated and consistent with the central planning of a socialist society. Furthermore, encouragement of
enterprise included legitimation of private property and invitation to foreign capital to bring in manufacturing and high tech,
quite a departure from the socialist mode in the USSR. Provinces like Hong Kong and Macao, as well as Taiwan, continued in a capitalist
mode of production giving rise to Deng's characterization of the Chinese economy as being "one country -- two systems." While the return
of Hong Kong and Macao to Chinese political jurisdiction from imperialist controls was already contemplated based upon contractual relations,
which were drawing to a close, Taiwan differed in that context since it had never been occupied by a foreign power. Nonetheless,
the pledge of the Central Government to respect capitalist relations in these provinces is an umbrella that includes Taiwan.
Taiwan, in essence, became a military protectorate of the USA, was sponsored in international circles and favored economically with
investment and trade, becoming one of the outstanding world producers of plastic and later, electronics. It's economic integration
developed with the West before mainland modernization. Cross-channel investments did not begin until the modernization program
was well under way in the late 1980s and in high gear in the 1990s. Though the Kuomintang oriented government continued to pressure
enterprises against moving facilities to the mainland, that changed with the unprecedented growth of China's economy in the Eastern
and Southern provinces across the Straits. Taiwan continued to hold the Security Council seat until 1971, just before the Nixon rapprochement.
During the latter days of the turmoil, the Nixon Administration, seeking to neutralize China during the Cold War and taking advantage
of the fifteen year split with the Soviet Union, made contact and visited Beijing to open relations with the Communist regime. Notably
this was also the period during which the Assembly in the United Nations moved to remove Taiwan representation in the China seat of
the Security Council and recognize the legitimacy of the central government in Beijing.
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