[2] Before the establishment of the "Three Links", communication between the two sides were routed through intermediate destinations, primarily Hong Kong; Macau; Jeju, South Korea and Ishigaki, Okinawa Prefecture, Japan.
In December 1978, Deng Xiaoping and his supporters won the 3rd plenary session of the 11th Central Committee of the Chinese Communist Party, starting China's economic reform.
The Council stated that the Three links would only be considered when the PRC stopped its animosity against ROC sovereignty and improved the cross-strait relationship.
The previous administration led by President Chen Shui-bian, who was in power from 2000 to 2008, was keen to establish direct links under his "four noes and one without" pledge.
However, China eventually shifted its position when it realized that the three links may be an opportunity to hold on to Taiwan, with its Minister of Transport and former Minister of Foreign Affairs Qian Qichen declaring that the "one China" principle would no longer be necessary during talks to establish the links, which would be labelled merely as "special cross-strait flights" and not "international" nor "domestic" flights.
When introduced in January 2001, they allowed only those with household registrations in Kinmen and Matsu to use the trade links, as well as China-based Taiwan businessmen.
[8] The ferry trip, which takes at least 30 minutes, involved regular routes connecting Kinmen to the ports of Xiamen and Quanzhou, and Matsu to Mawei.
In early 2002 a China Airlines flight to Hong Kong crashed into the Taiwan strait killing all 225 people on board.
[11] In early 2003, the Republic of China (ROC) government permitted its air carriers to ferry Chinese New Year passengers back and forth across the Strait by way of "indirect charter flights" that touched down briefly in Hong Kong or Macau.
Airports on both sides saw ceremonial displays on the arrival of the first passengers, with dancing lions and dragons, and officials making speeches.
The ruling DPP has traditionally been reluctant to implement this, citing the PRC's refusal to negotiate unless the Taiwanese counterparty accepts the one-China principle under the 1992 consensus.
In June 2007, DPP presidential candidate Frank Hsieh criticised Ma's plans as a reflection of his lack of experience in handling cross-strait affairs.
[26] Announced routes so far are as follows: Negotiators are expected to meet again in Taiwan to tackle outstanding issues, including revisiting the issue of introducing cross-strait charter cargo flights within three months,[30] the introduction of direct flight routes without the need to fly via Hong Kong airspace[19] and subsequent addition of destinations and frequencies.
[citation needed] In reaction to 13 June 2008 agreements, the DPP criticized the government of "yielding to China", and accused Straits Exchange Foundation Chairman Chiang Pin-kung of "defying the legislature", saying the "Act Governing Relations between the People of the Taiwan Area and the Mainland Area stipulates that legislative resolutions are required before any direct cross-strait links are opened", which was not carried out.
Chiang dismissed the accusations, saying he followed the precedent set by former SEF chairman Koo Chen-fu, and would "report to the legislature's Home and Nations Committee instead of the legislative caucuses".
The Vice Minister of National Defense Lin Chen-yi has further recommended to maintain indirect flight routes via a third party's air space on 23 May 2008.
But on 18 June 2008, the Minister of National Defense Chen Chao-min declared that direct flights without the involvement of any third party air space would not pose a threat to national security, saying "The final routes for direct charter flights shall be decided by the Mainland Affairs Council and the Ministry of Transportation and Communications.
We will submit recommendations to the MOTC that take national security into consideration, but I do not foresee any problems if the flights travel directly between Taiwan and China".
[38] The DPP gave itself credit for having "laid the groundwork" for opening weekend charter flights and allowing Chinese tourists into Taiwan, both of which did not occur under KMT rule, and criticised the current negotiators as being "inexperienced and ill-prepared".
The ten biggest markets are as follows: The enforcement of the ban on direct trade links has benefited third party transit points, in particular Hong Kong, since 1988.
[48] Chinese Premier Wen Jiabao believes Hong Kong will not be affected as the increased economic exchange may benefit the city too.
[49] In the immediate aftermath of the announcements for 4 July direct flights, shares of Cathay Pacific fell by 1.8% over fears of its negative impact on the airline, which derives significant profits from the route.
[53] The impending competition also prompted the main Chinese airlines to embark on a publicity blitz, highlighting their intentions to provide their best aircraft, crew and service to passengers, including customized in-flight meals to suit tastes from both sides.