This paper analyzes the Taiwan policy of the Chinese Communist Party after its 1 6th National Congress . The main theme of the Mainland,5 current Taiwan policy centers on ” economic development,”with a hope thatthe Taiwan issue should not delay or undermine the progress of the Mainland , s economic development . At the same time,the Mainland has two basic pillars on its current Taiwan policy :”stabilizing Sino 一 US relations ” and ” appealling to the Taiwanese public . ” In the short run , the stalemate of cross 一 Strait relations will continue ; the possibility ofaplebisciteonTaiwan , sindependence and the Mainland , 5 military threats to deter Taiwan independence ( plebiscite ) are two forces that sustain the tension across the Taiwan Strait . Nevertheless , the ” three links ” issue will be the focus ofbilateral interaction and negotiation in the short term and could be the catalyst and mechanism to improve cross - Strait relations .