The simmering feud between China and Taiwan burst into the open yesterday when Beijing criticised the President of Taiwan for making strident calls for independence.

Li Zhaoxing, the Chinese Foreign Minister, speaking at the Chinese People’s Political Consultative Conference in Beijing, said: “Don’t listen to local leaders. Whoever wants to split away will become a criminal in history.”

His anger, which came a day after the announcement of an 18 per cent increase in Chinese military spending, was triggered by remarks at the weekend by Chen Shui-bian, the President of the self-ruled island that lies within striking distance of the southern coast of China. Beijing has regarded Taiwan as a renegade province since the Nationalist armies fled there after losing the civil war in 1949.

The Taiwanese President, who has accelerated his drive to edge the island towards formal independence from China, told a pro-independence group at the weekend: “Taiwan should be independent.” He added: “Taiwan is a country whose sovereignty lies outside the People’s Republic of China.”

Such bold declarations enrage the Communist rulers of China, who have threatened to take back the island by force if it abandons its formal goal of eventual reunification, and declares independence.

Mr Chen said Taiwan should change its official title, the Republic of China — a statement certain to worry his key ally, the United States, which seeks to maintain the status quo. America switched diplomatic recognition to Beijing from Taipei in 1979, recognising “one China”, but is obliged by the Taiwan Relations Act to help the island to defend itself.

The President, speaking in his native Taiwanese dialect, proposed what he called a “four wants” policy: independence, a new constitution, development and new names for local companies that use the word China in their title. This is a shift from his previous “four nos” pledge in 2000 not to move towards independence if China did not threaten the use of force. Mr Chen, weakened by a corruption scandal involving his son-in-law and wife, is trying to drum up support for his Democratic Progressive Party before legislative elections at the end of the year. His actions in recent weeks have been apparently aimed at portraying himself and his party as willing to stand up to threats from China in the interests of greater independence for an island that has ruled itself for nearly 60 years.

The word China was replaced by Taiwan on postage stamps on February 28, an emotive date in Taiwan since it was the 60th anniversary of an uprising against Generalissimo Chiang’s Nationalists that was suppressed and resulted in more than 10,000 deaths. Last week the Chinese Petroleum Corporation became CPC Corporation, Taiwan, while China Shipbuilding Corp is to change its name to CSBC Corporation, Taiwan. China has adopted a low-key response to Mr Chen, generally choosing to ignore him and waiting for the possible election of a less confrontational Nationalist leader.

The main Taiwanese opposition Nationalist Party said that it did not support independence and called Mr Chen’s direction a “disaster for Taiwan”.

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