The term "strategic balance" refers to the relative capabilities of the two sides to achieve their respective strategic objectives in relation to the other. For China, this strategic objective is reunification with Taiwan on China's terms. Taiwan's objectives are to maintain its political independence, freedom of action, and way of life, free from coercion or undue influence from China, and to gain acceptance as a member of the international community. The concept of a strategic balance encompasses but is broader than an assessment of the military balance between two sides. It includes, for instance, assessing the impact of economic, social and cultural ties between China and Taiwan on cross-Strait strategic dynamics; the influence of changing social developments on each side as they affect notions of self-identity, mutual identity, etc.; and the effect of international perspectives and involvement in cross-Strait affairs. Such issues are addressed in papers and commentary included in this section.

Taiwan Domestic Trends — Offers an analysis of the evolution of modern Taiwanese self-identity and how this may affect resolution of the Taiwan Strait issue.

Confidence Building Measures — Explores various Confidence Building Measures (CBMs) and their potential application to reduce tensions and avoid miscalculation across the Taiwan Strait.