Taiwan and China Do the Sabre Dance

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It is arguably one of the biggest games of bluff and counter-bluff in modern Chinese history. Eyeing each other warily across the Taiwan Strait, China and Taiwan are testing how far they can go without plunging into full-scale war.

China could hardly contain its fury when the President of Taiwan, Lee Teng-hui, made a "private visit" to the United States in June, a visit that was seen as undermining China's success in diplomatically isolating Taiwan, which Peking regards as a renegade province.

A month after the President's visit, China tested tactical ballistic missiles in the Taiwan Strait, showing it was able to attack the island. Another exercise followed in …