The Study Of Cross-strait Industrial Cooperation Under East Asian Regional Division Perspective

In wave of regional economic integration, Chinese mainland has signed four freetrade agreements in East Asia: the CEPA with Hong Kong and Macao, FTA (CAFTA)with ASEAN, the ECFA with Taiwan. In the world economic crisis, East Asian is theonly area that regional economic performance is still booming. As the cross-straiteconomic and trade relations are easily affected by policy, the focus of cross-straitindustrial cooperation will be different in this new context. Based on the perspectiveof East Asian regional division, this paper not only discusses the focus of cross-straitindustrial cooperation in detail, but also the way of Taiwan joining in regionalcooperation in East Asia.First, this paper analyzes regional industry division in East Asian. In recent yearsChina’s position in East Asian has improved. CAFTA and ECFA also have a certainimpact on division. Then the order of “swallow model” tends to change. But ingenerally speaking, there are no significant changes on the position of mainland andTaiwan, which still end the regional industry division. Second, this article discussesthe history, status and trends of cross-strait industrial cooperation. Accompanied bythe cross-strait economic and trade cooperation rising from the civilian level to theofficial and institutional negotiation level, it’s inevitable that cross-strait industrialcooperation will go further. Third, it is discussed in detail the difficulties that Taiwanfacing with when participates in East Asian cooperation. Then the author draws theconclusion that it’s not feasible for Taiwan to join in CAFTA under the WTOframework through legal channels. The only way for Taiwan to benefit from CAFTAis using CAFTA rules of origin to increase investment in Chinese mainland. The lastpart of this paper puts forward three proposals for cross-strait industry cooperationform perspective of industry chain. Both sides should strength cooperation with eachother on three industry chain link as R&D、logistics and terminal sales. The R&D linkshould focus on cross-strait industrial planning, especially emerging industries. Andthe logistics link should focus on shipping cooperation. Well, the terminal sales link needs cross-strait to work together to expand mainland domestic market and establishbrand to enter the world market.