Remember the China/Taiwan "dollar Diplomacy" and these were donating vast amounts in order to win support in favor of each respective" country." This may soon be over Chen Shui-bian has called for this to stop and in his own words "Taiwan must never engage in a spending competition with China." You really think he can and will stop this? But then again, its also very exotic to report on China/Taiwan's surge in foreign aid to countries such as Grenada, Nauru, and Dominica.
What does this mean for the Taiwan-China rivalry? Would it mean more spending on other factors of rivalty (such as the military) or could it reduce the tensions between the two Chinas? You never know - but the sabrerattling between the rivals has lasted for 50 years without any major conflicts- why wouldn't this carry on as usual despite the end of the expensive "dollar diplomacy". Besides, the Taiwanese New Dollar has just dropped to new lows.