Hu Jintao of Taiwan that the PRC considers provocative. Hu's initial response was a combination of "soft" and "hard" approaches. On the one hand, Hu expressed a flexibility to negotiate on many issues of concern to Taiwan. On the other hand, he continued to refuse talks without preconditions and remained committed to Chinese reunification as an ultimate goal. While Hu gave some signs of being more flexible with regard to political relationships with Taiwan as in his 17 May Statement, where he offered to address the issue of "international living space" for Taiwan, Hu's government remained firm in its position that the
Hu Jintao counterpart Ma Ying-jeou agreed that the 1992 Consensus is the basis for negotiations between the two sides of the Taiwan strait. On 26 March 2008, Hu Jintao held a telephone talk with then US President George W. Bush, in which he became the first Chinese leader to officially recognize the 1992 Consensus. After several months of negotiations, in December 2008, the two sides agreed on the resumption of the Three Links, i.e., a re-opening of mail, trade, and direct air links between the two sides. Relations have been cordial since between the two sides, and trade increased immensely, culminating in