Two things became apparent during a recent visit to China. One was the vitality of the economy; the critics who fussed over China's recent export downturn overlooked Beijing's ability to shift to a domestic demand-oriented economy. The other was the importance of Taiwan in Beijing's thinking.

True, Taiwan has always been important. No self-respecting government would tolerate the nearby existence of a small, discredited and defeated civil war faction claiming the right, first to counterattack, then to represent the entire nation, and finally to be independent and tie up with China's enemy, the United States.

But with the reconciliation-minded Ma Ying-jeou elected to the Taiwan presidency last year, the planners on both sides have been working hard to develop closer links. Trade and investment are taking off. At an academic conference I attended in Beijing last month, by far the most popular booth for students and teachers seeking exchange ties abroad was the Taiwan booth.