The China–asean Free Trade Agreement And Taiwan

While China's move toward a FTA with ASEAN reflects Beijing's most recent foreign economic policy adjustment and represents a new stage in the nation's open-door policy, it inevitably produces significant impact on cross-Taiwan Straits relations. This recent development in China's foreign economic relations brings not only substantial psychological and real effects and pressure on Taiwan for its possible isolation and marginalization from the ongoing process of regional integration in East Asia, but also growing pressure exerted by the island's business community that fears being pushed into a disadvantageous position in competition with ASEAN companies in the ever expanding and lucrative market of the mainland. For strategic, diplomatic, and economic considerations in the face of this new challenge, Taiwan is pursuing counter-measures by searching for its own FTAs with other countries within and beyond the region.