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Protesters in Taiwan are angry. They've taken over the island's parliament, blocking the doors with piles of furniture. They also stormed the offices of the Cabinet, where they clashed with riot police armed with batons and water cannons.

The source for all this hostility? A proposed trade deal with mainland China that would open up more than 100 service sectors, ranging from banks and telecommunications to travel agencies and hospitals.

But like the protests in Ukraine a few months back, the discontent in Taiwan is about much more than Chinese investors setting up travel agencies on the island. It's about Taiwan's future and how it preserves its identity — and relevance — in the shadow of China and its growing economic, political and military clout. Many see it as a battle for Taiwan's economic and political survival.

"The Taiwanese are having a kind of anxiety," acknowledged Lung Ying-tai, Taiwan's first minister of culture, during a meeting earlier this month with a group of U.S. journalists.

"Everybody gets very edgy [about China's economic strength]," she said. "But the Taiwanese are even edgier than other people, [who] don't have missiles stationed right across the strait."

Losing Its Economic Edge

The two sides split in 1949 during the Chinese civil war. Beijing considers Taiwan a breakaway province and remains committed to the goal of eventual reunification — and hasn't ruled out the use of force to do so.

When I lived in the capital Taipei a decade ago, anxiety about China was already palpable. But then, Taiwan — one of the Asian Tigers — was thriving economically, boasting vigorous growth and leading-edge high-tech companies that made semiconductor, personal computers and notebooks.

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