There is real benefit in increasing cross-straits financial links. Banks have much to gain by being able to service clients in Taiwan with business on the mainland. Cross-straits links may attract service industries to Taiwan that would otherwise go to Hong Kong. Mainland tourism is also an unqualified plus.

But Taiwan seems to be talking itself into believing that it is even more dependent on the mainland than need be the case. The island would be a more attractive place for foreign business if it removed the many restrictions that exist to protect local businesses, or stem simply from bureaucracy and outdated rules. Tax issues also tend to keep business offshore while not preventing a huge outflow of capital. The Ma government has made progress on these issues, but they get scant attention compared to cross-straits ones.

It is easy to blame a lackluster economy on being unable to take full advantage of the mainland. But in reality, Taiwan is a mature economy with minimal growth in its work force. Like Japan, its problems lie with an inefficient domestic services sector, not with an inventive export-manufacturing one.

Dependence on China is often overstated. While 40 percent of Taiwan’s exports go there, more than half are components for globally traded items like laptops and cellphones made by Taiwanese companies and then re-exported from China. The dependence is self-imposed for profit reasons, which may be shifting as mainland costs rise. There are alternatives.

Worrying too for friends of Taiwan’s liberal democracy is the vengeance being meted out to the opposition by powerful supporters of the governing Nationalist Party, or KMT. Former president Chen Shui-bian was found guilty of corruption and his conduct has left the opposition Democratic Progressive Party demoralized and frustrated. But given the pervasiveness of money politics and the past reputation of the Nationalists for corruption, the life sentence for Chen is extreme. Now, in the name of fighting corruption, there is talk of a witch-hunt against other members of the Chen administration. To some this smacks of an attempt by pro-unification elements to please Beijing by demonizing Chen, who supported independence and who suffered much in the cause of breaking the KMT’s authoritarian hold on power.