Mr. Chen Shui-bian was elected the President of the Republic of China on March 18, 2000. Judging by his recent announcements and the manner by which he attempts to assemble the new cabinet, it is apparent that his government would be quite different form the KMT government in so far as Mainland China policy as well as foreign policy are concerned. This has caused grave concern both at home and abroad. The new government's position on foreign policy appears moderate and its determination to defend Taiwan is doubtless. Only its pro-independence position casts a shadow across the Taiwan Strait. Taiwan has its strength and its weaknesses in the international arena. Taiwan's strength lies in its political democratization, economic liberalization and strategic importance, while military pressures from the PRC and diplomatic blockade from Beijing tend to be the biggest challenges facing Taiwan. The urgent task for Taiwan is to protect national security, maintain economic development, sustain stable relationship with the adjacent powers, such as Japan and the United States and keep trying to enter international organization.