A Study On How The Cross-Straits ECFA Takes Effect On The Economic Relations Among Mainland China, Taiwan And South Korea

Mainland China has been concluding the trade agreement with lots of countries since joining WTO in2001. This openness made Mainland richer than ever economically, and still many neighbor countries are still trying to deal with Mainland China.The Cross-Straits ECFA, signed in June,2010, has taken its official effect in2011. The evaluation about the effect is contrast between Mainland and Taiwan. Although, Mainland and Taiwan did not make the political exchange each other for a long time before the ECFA’s conclusion, the economic exchange was stable. When the significance of this agreement could be reached differently each other, the neighbor countries recognize it as arrival of the’Chiwan generation’.Especially, it is threatening one of the closest countries, South Korea, which has the almost same economic and trading structure with Taiwan toward Mainland China. Hence, the ECFA reminds of the trade relationship between Mainland China and South Korea, with the relatively high trade amount. Now, the joint research and investigation on the FTA between Mainland China and South Korea has been just finished, and the trade competition between South Korea and Taiwan also needs to be considered. The ECFA’s effect would take place on Taiwan’s economic growth either directly or indirectly, and attract many foreign countries to invest in Taiwan.Many South Korean enterprises and experts, generally having the negative point of view on the ECFA’s effect, require the prompt negotiation on the FTA with Mainland China, but need to consider the national condemnation that South Korea broke off diplomatic relations with Taiwan since establishing diplomatic ties with Mainland China in1992. Though the relationship between Taiwan and South Korea is quite similar with that between South and North Koreas, the diplomatic approach of Mainland China to Taiwan is such the important point to learn for South Korea. Moreover, in order to organize the regional economic integration in East Asia, they all need to consider not only mutual competition but also win-win strategy in long-term for mutual benefits.