Really Going WTO?  (c) Simon Xi Zhang, 2002

II. Economic Analysis of Cross-Strait Trade during Pre-WTO Period


Before 2002, although the cross-strait trade and business were conducted indirectly, economic tie between China and Taiwan increased substantially. The cross-strait trade was brought up largely because of Taiwan's increased investment in China[31]. This characteristic "investment-driven-trade" phenomena deserves important attention for the study of cross-strait trade and economic relationship. It also determines the future interaction between Taiwan and China during the post-WTO-accession period. Accordingly, it helps understand how Taiwan is to revise its law and to what extent it will be WTO-compatible. 

[31] Chen-yuan Tung, Division and Interdependence between Taiwan and China in Global Economy, ECONOMIC SITUATION AND REVIEW QUARTERLY, Vol.7, No.3 (Ministry of Economic Affairs, Taipei, December 2001), pp.3-4 (page number from online version).