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The Implications of China-Taiwan Economic Liberalization


  • Daniel H. Rosen

    (Peterson Institute for International Economics)

  • Zhi Wang


China and Taiwan have built one of the most intertwined and important economic relationships in the world, and yet that relationship is not mutually open, compliant with World Trade Organization norms, or even fully institutionalized. What's more, despite massive trade and investment flows, the boundary between the two is a serious flashpoint for potential conflict. But leaders in Beijing and Taipei have committed to normalize and deepen their economic intercourse and open a new post-Cold War era in their relationship. While the political significance of this gambit has captured attention worldwide, the scope of opening intended and the bilateral, regional, and global effects likely to ensue are as yet poorly understood. This volume attempts to remedy that uncertainty with careful modeling combined with a qualitative assessment of the implications of the cross-strait economic opening now agreed in an Economic Cooperation Framework Agreement (ECFA). The study explores the implications for Taiwan and China, for their neighbors, and for the United States if this undertaking is fully implemented by 2020.

Suggested Citation

  • Daniel H. Rosen & Zhi Wang, 2011. "The Implications of China-Taiwan Economic Liberalization," Peterson Institute Press: Policy Analyses in International Economics, Peterson Institute for International Economics, number pa93, January.
  • Handle: RePEc:iie:piiepa:pa93
    Note: Policy Analyses in International Economics 93

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    Cited by:

    1. ., 2012. "East Asian Economic Integration and its Impacts on Regional and Global Economies," Chapters,in: Trade and Industrial Development in East Asia, chapter 9 Edward Elgar Publishing.
    2. Frank Bickenbach & Wan-Hsin Liu & Hector Niehues-Jeuffroy, 2015. "On the puzzling slowdown of wage and productivity growth in Taiwan: evidence from a comparison with South Korea," Asian-Pacific Economic Literature, Asia Pacific School of Economics and Government, The Australian National University, vol. 29(1), pages 82-101, May.
    3. Peter C.Y. Chow, 2013. "The emerging trade bloc across the Taiwan Strait in regional and global perspective," Chapters,in: Economic Integration Across the Taiwan Strait, chapter 10, pages 239-267 Edward Elgar Publishing.
    4. Lien, Donald & Yang, Li & Zhou, Chunyang & Lee, Geul, 2014. "Co-movement between RMB and New Taiwan Dollars: Evidences from NDF markets," The North American Journal of Economics and Finance, Elsevier, vol. 28(C), pages 265-272.
    5. Richard C.K. Burdekin & Yijing Shen & Hsin- hui I.H. Whited, 2013. "Cross- Strait linkages: historica perspective and empirical evidence," Chapters,in: Economic Integration Across the Taiwan Strait, chapter 1, pages 1-29 Edward Elgar Publishing.
    6. Peter C.Y. Chow (ed.), 2013. "Economic Integration Across the Taiwan Strait," Books, Edward Elgar Publishing, number 14694, April.

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