Study On The Effective Path Of Cross-Strait Economic And Trade Cooperation Under The Background Of East Asian Economic Integration

In the third global integration tide, bilateral FTAs become the main pattern of East Asian economic entities to deepen the economic cooperation and thus formed a new "Hub and Spokes" structure in which emerging economies act as the axis. Regional cooperation groups such as TPP and RCEP affect the process of regional economic integration in East Asia, both of them are lead by the big power. East Asian economic integration affect the cross-Strait trade relations and status. It seems that the external environment become more complex, and the basic status of ECFA have been weakened, at the same time, Taiwan won the "bypass" way to expand the scope of regional cooperation. It is an inevitable trend that the economic and trade cooperation between the Mainland-Taiwan have to be expanded to the East Asia and the whole world.Based on the "Hub and Spokes" model, this paper analyzes the effective way of cross-Strait economic and trade cooperation under the background of East Asian economic integration. This paper obtains the possible path of economic and trade cooperation between Mainland-Taiwan. Based on the "Hub and Spoke" theory, this paper constructs a universal FTA network model which is formed by three economic entities to analysis the social welfare and trade volume changes after the "spokes" signing a trade agreement, and then compares the differences between the changes under unique situation. The global trade analysis system model (GTAP) has been used to verify the validity of the conclusions of he theoretical model.Combined the theoretical analysis with the empirical test, the paper puts forward the effective way of the cross-Strait economic and trade cooperation under the background of East Asian economic integration. On the one hand, the Mainland-Taiwan should expand the economic and trade cooperation space based on ECFA, and RCEP is the optimal selection. On the other hand, the two sides should consider industry characteristics of bilateral FTA countries and develop cooperation in their market. Finally, this article put forward the policy suggestions under the framework of valid path. On macro level, the two sides should establish a multi cooperation mechanism and trust mechanism and adjust the industrial division. On micro level, the overlapping investment industry and emerging industries should be regarded as starting point to opyimize the pattern of industrial development.