Hopes pinned on peace

CHINA'S WARNING: MILITARY PLANES, SHIPS ENCIRCLE TAIWAN

People on both sides of the fraught Taiwan Strait pinned their hopes this week on peace, after Beijing launched military drills around the self-ruled island.

China on Monday sent fighter jets, bombers and warships to encircle Taiwan in exercises it dubbed a "stern warning" to "separatist forces" on the island.

But in mainland China's county of Pingtan - at some points just 126km from Taiwan's main island - small business owners hoped relations would improve, if only to help boost their struggling local economy. Many only gave their surnames, highlighting just how sensitive the issue of Taiwan has become in China.

Pingtan and Taiwan enjoy close cultural and familial ties. Elderly locals talked fondly of family members on the island or those who lived there previously. So close are the landmasses, one octogenarian said, that on a clear night one can see the lights of Taiwan twinkling across the strait.

One beach hawker said Taiwanese tourists used to be a common sight, but not any more.

And at a local "Taiwan Town" - a duty-free shopping area mainly for goods from the island - many shops were boarded up.