Abstract
Cross-strait relations underwent a fundamental change when both China and Taiwan joined the World Trade Organization (WTO) in 2001. The WTO is the first world-wide multilateral organization in which China and Taiwan share equal statuses. Thus, the WTO provides a neutral forum for China and Taiwan to resolve trade conflicts. More importantly, the WTO requires the two states to behave toward one another in a manner consistent with WTO norms. Consequently, the trade policies of China and Taiwan would change in response to their WTO obligations. In addition to the WTO, Asian regionalism, which refers to the recent accelerated integration of Asian countries also shapes relations between China and Taiwan, along with their foreign policies in the Asia Pacific.
The purpose of this Article is to analyze cross-strait trade relations as it relates to recent developments of the WTO and Asian regionalism. After the introductory section, Section II will examine cross-trade relations under the WTO framework, including implications of WTO obligations for trade policies of China and Taiwan. Furthermore, this section will analyze cross-strait trade disputes occurring in the post-WTO era. Section III will discuss the development of the Asia-Pacific Economic Cooperation (APEC) and the Association of Southeast Asian Nations (ASEAN), as well as China’s and Taiwan’s involvement in and interactions with these organizations. In addition, this section will assess the impact of Asian regionalism on cross-strait relations. Section IV will explore the China-Hong Kong Closer Economic Partnership Agreement (CEPA) and the prospect for the cross-strait free trade agreement. Finally, Section V will present the conclusion of this Article.