Very interesting article in the NY Times today, which throws some light onto why China refused entry to Hong Kong to the US warships a few weeks back. The Chinese are now suggesting that US Secretary of Defense Gates did not tell them about forthcoming arms sales to Taiwan when he was in Beijing in early November. Gates said he did. Gates is also making some comments which could be interpreted as suggesting divisions inside China between the civilian and military leadership.
To help redress the balance, Winston Peters' good friend Condi Rice is reported in the same article as describing the forthcoming referendum in Taiwan as "provocative". Xinhua like that comment by the way.
The Hive has an analysis of the forthcoming Taiwan referendum in preparation.