The Analysis On The Openness Of Finance Sector Service In Mainland China And Taiwan Under The Dispute Background Of Service Agreement

When Mainland China and Taiwan were on the key point of signing the Cross-Strait Service Trade Agreement (CSSTA), the dispute on the content led to the laying-aside of CSSTA, which should have been a deep and mutual openness of both sides. The doubt concentrates on:whether the openness is equal; the achievement of CSSTA is beneficial for Taiwan more or not. It comes out that the openness of Mainland is higher than that of Taiwan and CSSTA brings more benefits for Taiwan than expected. This paper tries to clarify the misunderstandings; and it overviews future cooperation on cross-straits financial service by category.The paper mainly uses RCA indicators to calculate the international service trade competitiveness of Taiwan. The study concludes as follows:the competitiveness of Taiwan trade service is in the comparably weak position among main developed economies; besides, the competitiveness of emerging departments especially financial departments is gradually weak and tired. The phenomenon proves that Taiwan will be abandoned in the international economy trend if Taiwan doesn’t actively join in the tendency. This paper makes classification by category in banking, security market, insurance market and free trade zone. With the above theory, the paper analyses the choices of cross-strait financial sectors’ cooperation and concludes that CSSTA benefits strengthening the service trade of Taiwan.The paper applies Stata 12.0 to analyze the openness factors of mainland China’s influence on Taiwan in the period of ECFA front and back. And it concludes that Taiwan’s economy directly benefits from Mainland’s openness after ECFA which means that Taiwan benefits much from the trade and contact in the cross-strait relationships. At last the paper provides suggestions on the policy and financial industry development on cross-strait cooperation.