It will take time and there will be no immediate breakthroughs. But someone has to take the first step.

Taiwan probably will try to present itself as a victim of the law.

An improvement in his image in the eyes of the Chinese people will strengthen his hand and show that he is in control, that he is no longer restrained by Jiang Zemin.

There is a bit of speculation that Mr Jiang has been pushed aside, as there are certain subtle pressures suggesting that he should step down.

But it's for sure this is not going to make Beijing make any meaningful concessions under pressure.

Both sides have to be careful, they have to be responsive to the rising nationalist sentiments in their respective countries, so there is very limited room for maneuver,