China 11 Jan said it successfully conducted a missile defence system test. Test occurred amid anger at U.S. arms sale to Taiwan; China said test “not targeted at any country”. China 30 Jan suspended military exchanges with U.S., threatened sanctions against U.S. defence companies after U.S. announced $6.4b in planned arms sales to Taiwan. Taiwanese delegation travelled to Beijing for talks on proposed Economic Cooperation Framework Agreement (ECFA) 27 Jan.

Taiwanese opposition parties 21 Dec gathered for protests in central Taoyuan as China’s top negotiator arrived to discuss free trade agreement; fear pact would undermine island’s sovereignty and force economic dependence on China.

U.S. President Obama during mid-month visit to Beijing called for continued progress in China-Taiwan relations. Surrounding statements underscored tensions over upcoming U.S. arms sales to Taiwan, with U.S. administration indicating sales would continue, and Beijing 25 Nov reiterating “resolute” opposition. Taiwanese Premier Wu 21 Nov announced “time not ripe” for negotiations on cross-strait peace accord.

Taiwan interior minister 25 Sept announced exiled Chinese ethnic Uighur leader Rebiya Kadeer would not be allowed to visit as planned in Dec. Govt 4 Sept announced will drop its annual bid to join UN. Both moves likely to ease tensions with Beijing after Aug Dalia Lama visit.

Tensions with Beijing increased over Dalai Lama visit to Taiwan 30 Aug, at invitation of opposition Democratic Progressive Party (DPP), to comfort early-Aug typhoon victims. China condemned visit, stressed “negative influence” on relations, and cancelled or scaled down several exchange activities; aimed criticism at DPP rather than President Ma, in apparent effort to avoid sabotaging improved relations.

China 16 July boycotted opening ceremony of World Games in Taiwan. President Ma Ying-jeou elected head of ruling Kuomintang (Nationalist Party) 26 July. President Hu Jintao 27 July sent congratulatory telegram, Ma suggested they “put aside disputes”; first direct exchange of messages between Chinese, Taiwan leaders in over 60 years.

President Ma Ying-jeou 17 June denied drift toward reunification with China, said supports status quo unless majority of islanders voted for change. Govt 1 July partially lifted ban on Chinese investment on island.

Thousands demonstrated in Taipei 17 May against President Ma Ying-jeou’s policy of engagement with China. Opposition Democratic Progressive Party leader Tsai Ing-wen called for referendum on President’s plan for free trade agreement with Beijing. President 20 May urged Beijing to remove missiles directed at Taiwan.

China-Taiwan relations improved further with new set of agreements 26 Apr including opening of financial services industries and cooperation on internal security. Direct flights across Taiwan Strait expanded from 108 to 270 per week.