Carrots and More Carrots: Post ECFA Cross Straits Scenarios

China and Taiwan have signed the Economic Cooperation Framework Agreement (“ECFA”) which lays the foundation for future Cross Strait negotiations. Since 2008, China and Taiwan have signed agreements for direct flights, direct telecommunications/post, and judicial assistance and cooperation.  ECFA represents a strong opportunity for Taiwan to continue its “twin engine” economic growth strategy, which relies on both the US and China for growth. For China, ECFA represents a “sea change” from the prior sixty years of official belligerence and hostility towards Taiwan. The world welcomes this enlightened development. Both sides of the Taiwan Straits share a common interest in finding a modus vivendi.  ECFA suggests possible future free trade agreements between Taiwan and China as well as Taiwan and regional neighbors.

Professor Wu thinks cross straits relations will continue to improve, since it is in Beijing's best interest to strengthen ties. He says: “Taiwan would want Beijing to use carrots and not sticks.  If the carrots are not bringing the desirable result, then, more carrots.”