Brian J. Dunn makes a strong argument that mainland China is preparing for an inevidable invasion of Taiwan:

The only question is when China will go. I think it will be on the eve of the 2008 Peking summer Olympics. China will have the security issue to cover mobilization and movement of military units. And everybody will assume China is using the attention as a coming out party to highlight their advances and their place in the sun. I think swallowing China under the nose of US and Japanese protection will be even better to demonstrate their power. Why else go on a crash building program for naval units?

This article in the Taipei Times, however, thinks China will use the 2008 Olympics to whip up nationalism and then focus on absorbing Taiwan in the years that follow:

Hat Tip: InstaPundit