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Economic Cooperation Framework Agreement: Opportunities for a Better Future Across the Taiwan Strait

Highlighting an important development in the cross- Strait relationship, the Center for National Policy hosted a panel discussion on Capitol Hill that examined the Economic Cooperation Framework Agreement (ECFA) between China and Taiwan. Speaking to a full audience, Congresswoman Madeleine Bordallo of Guam kicked off the event by addressing fears that the ECFA is a step towards a Chinese takeover of Taiwan, arguing instead that the more economies become interconnected the more likely countries are to "work cooperatively to address issues of mutual concern." She was followed by her colleagues Representatives Dan Burton and Jack Kingston who acknowledged the importance of the agreement. 

The panel discussion began with Eric Chiang, director of the Economic Division of the Taipei Economic and Cultural Representative Office, suggesting that the ECFA will allow Taiwan to become a part of the "evolving economic integration in Asia." By integrating its economy with that of China, Taiwan's "economic advantage grows as China grows."  

Next, Charles Freeman of the Center for Strategic and International Studies, acknowledged the Taiwanese preference of maintaining some type of separation between the mainland and themselves, but noted that the opportunities of this agreement outweigh the challenges. As consumption in China grows, and declines in the United States, Taiwan cannot afford to be left out of the Chinese market.

Finally, Douglas Paal of the Carnegie Endowment for International Peace, concluded the discussion by focusing on American concerns about the ECFA. He concluded that the agreement will not lead to something that will "disadvantage the United States strategically," noting that "the nature of strategic threats in the world today doesn't depend on 90 miles or 100 miles of distance." He concluded that Taiwan will continue to field a capable defense force and the United States will continue to provide it with defensive armaments as outlined by the Taiwan Relations Act.