Join The Wto Research And Cross-strait Economic Relations

After the entry of the two sides of the Taiwan Straits into the World Trade Organization (WTO), better institutional environment, policy environment and economic environment will be created for the development of cross-Straits economic and trade relations as can be seen from the following facts: both side have made their commitments to the WTO rules, have adjusted their economic and trade policies accordingly, and the economic development of both sides, especially on the mainland, maintained a sustainable and fast momentum ever since. The obstacles that have long affected the normal development of cross-Straits economic and trade relations have now been reduced or partly eliminated. The malformed indirect and one-way economic and trade relations across the Straits are starting to change. Trade and investment between the two sides of the Taiwan Straits are to become more convenient and cross-Straits economic relations will be gradually normalized.Direct cross-Straits trade will be realized, and the size of trade volume will grow; meanwhile, the composition of trade will change too. As a result, cross-Straits trade will become more interdependent. Two-way and direct investment between Taiwan and the Mainland will be realized. Recently, Capital from the Mainland has begun to flow into Taiwan. Investment of Taiwanese investor in the Mainland continues to grow. Investments are more and more considerably made by big companies. All stages of one industry have unified to invest in the Mainland. While most investment still focuses on manufacture industry, high-tech and service industry have now become the new investment hot spot. The Pearl River Delta and Yangtze River Delta areas still attract most of the investment, whereas Bohai Sea Rim Economic Zone and the Great West will become the new investment hot spot. The three direct links across the Straits are expected to have a partial breakthrough. Taiwanese investors have gradually moved their mature industries such as manufacture industry, parts of the electronic and information industry and service industry to the Mainland. A mixed model with both horizontal and vertical industrial division-of-labor across the Straits has come into shape.However, the Taiwanese authority is still using its adjustments of economic and trade policy to the mainland to manipulate the cross-Straits economic relationship, trying hard to control the degree of economic interdependence across the Straits to the limit that they believe is safe to Taiwan and, at the same time, making attempts to politicize and internationalize the cross-Straits economic relationship. The normalization of the economic relationship across the Straits is still unpredictable.With the economic development and the increase in national power of the Mainland, Cross-straits economic and trade relations will be even closer, and the dependence of Taiwan economy on the Mainland will grow. We should, with the premise of normalizing the cross-straits economic relations, promote economic integration and the liberalization of trade and investment across the Straits, so that economy on both sides of the Straits will grow hand in hand, and the political relations will also be further stabilized and developed to realize the peaceful unification of China as early as possible.