Abstract
In June 2010, the People’s Republic of China and Taiwan signed the Economic Cooperation Framework Agreement (ECFA), a preferential trade agreement, which is arguably the most important agreement between China and Taiwan. In this paper, we analyze ECFA and investigate its implications for South Korea since China is South Korea’s largest trade partner and Taiwan is its sixth largest. We find that ECFA will have significant political and economic implications for South Korea due to China’s role in East Asia and South Korea’s competition with Taiwan in the China market.
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