Taiwan has rejected the Chinese formula of one country two systems. In her New Year speech Taiwanese President vowed to defend the island nation's sovereignty saying the Hong Kong model would not work for Taiwan as democracy and authoritarianism can not co exist in the same country. China claims Taiwan as it's territory and wants to bring it under Beijing's control even if it requires the use of force. The anti Infiltration bill passed by Taiwanese Parliament recently has further sent the relations between the two to a new low.