The passing of the “Anti-Secession Law” was the third major watershed for China’s strategy towards Taiwan. The first was the end of the Kinmen Campaign in 1958. China’s Taiwan policy transformed from the offensive strategy of military liberation with the aspiration of world revolution and the characteristics of civil war to the defensive strategy of the cold war framework. The rapprochement with the US was the second watershed. With the Soviet Union as the common enemy with the US, Beijing falsely believed that unification with Taiwan was inevitable, and transformed its Taiwan policy to the ‘peace’ natured One Country,Two Systems This policy,however, became an empty promise after the post cold war ‘neo containment’ policy imposed by the US gradually came into shape. Upon the realization that unification could not be achieved in the immediate future, Beijing switched its strategy towards Taiwan again, and transformed its stance to “continue the pursuit of unification, while admitting the legality of the status quo.” The “Anti-Secession Law” was the manifestation of this policy. The law attempts to contain ‘de jure independence’ while actively engage in the tactics of ‘unification via commerce’. This can be seen as ‘congagement’, Chinese style. This violent shift in its position on Taiwan can be seen as the birth of Beijing’s new Taiwan discourse. The law’s fundamental definition of the cross-strait situation is that ‘unification is yet to take place, but the nation is not divided.’ The law also categorized Beijing’s Taiwan policies into three levels, which are ‘apolitical engagements’ (Article 6), ‘political negotiations of the final settlement’ (Article 7), and ‘non-peaceful methods’ (Article 8). The law is realistic yet backward. It’s backward because it traced the origin of the Taiwan problem back to the ‘Civil War’ 55 years prior, and used this origin to legitimize the use of non-peaceful methods. The result was the angry reactions and condemnations from both Taiwan and the international community. However, it is also realistic because it admitted that the ‘status quo’ is ‘legal’, even though it still does not recognize the existence of the ‘Republic of China’. The result of its realistic nature was an enormous success due to the inappropriate handlings by both the Taiwan government and oppositions. For the first time, Beijing was allowed spaces to interfere powerfully with Taiwan’s domestic politics, and for a while lowered Taiwan Society’s animosity towards Beijing. On the whole, the intensities of both positive and negative effects were far stronger than originally expected.