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.
After sixty years of cold (and sometimes hot) war in the Taiwan Strait, the world is witnessing a rapprochement that is taking hold in every societal sphere. Professor Leng shares his thoughts on trends and issues that may become focal points as the cross strait dialogue evolves in the coming years. He states that both sides need to better understand the domestic concerns of the other, and that regardless of whether one advocates unification or independence, the shared common imperative is to maintain peace and grow prosperity on both sides of the strait.
China's increasingly dominant position in the world economy makes it an undeniably important component of any company's global business strategy. Unfortunately, doing business in China still requires players to run a gauntlet of bureaucratic and practical obstacles. Professor Chen suggests looking to Taiwan for help entering the China market. Taiwan has linguistic and cultural links with China, as well as a mature legal environment that could make it an ideal home base for Greater China operations.