China Is Escalating The War Of Nerves

China's latest moves are intended to put maximum pressure on Taiwan--and business is paying the price

With their first democratic presidential elections slated for Mar. 23, most Taiwanese knew China would hold military maneuvers near Taiwan before the polls. Beijing has made no secret of its plans to discourage voters from casting a ballot for President Lee Teng-hui. Since his trip to the U.S. last June, Chinese leaders have vociferously accused Lee of abandoning the goal of reunification with China, instead pushing to make the prosperous island forever independent.

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