New Approaches to Cross-Strait Integration and Its Impacts on Taiwan’s Domestic Economy: An Emerging “Chaiwan”?

Taiwan’s Legislative Yuan and Presidential elections in January and March 2008 respectively re-orientated cross-Strait relations from hostility to co-operation. On 4 November 2008, Chen Yunlin, head of the Association for Relations Across the Taiwan Straits (ARATS), and Chiang Pin-kun (Jiang Bingkun), chairman of Taiwan’s Straits Exchange Foundation (SEF), meeting in the Second Chiang-Chen Talks in Taiwan, took a historical step in the further development of cross-Strait relations. Agreements were signed on direct air and sea transport, postal services and food-safety security. On 22 December 2009, the Fourth Chiang- Chen Talks took place in Taizhong and more substantial and technical agreements were signed on agriculture, inspection/ accreditation and fisheries. It seems that continuous integration between China and Taiwan is inevitable. To address the implications of this process for Taiwan’s domestic economy, four dimensions of the current cross-Strait relationship are scrutinized: guanxi, plutocracy, legalism and the idea of a Chinese Common Market. It is argued that in order to intensify economic co-operation across the Taiwan Strait, more institutionalization of the cross-Strait relationship must be brought about