Inside Report (4)

China is sending up more red flags about US-Taiwan ties. Some think China could put its relations with the US on hold -- or even break relations -- if Ronald Reagan captures are Reagan's vows to upgrade diplomatic ties to Taiwan.

China has been signalling its displeasure in various ways. One message was flashed through Canadian Prime Minister Pierre Trudeau during a recent visit there. Another came in an interview with Canadian newsmen. Vice-Premier Bo Yibo told the reporters that "any move for official relations with Taiwan" by the US would have "serious consequences."