The worldwide country to sign up the “Free Trade Agreement” is turn into the trend because of the economic globalization, meanwhile Asia is most active region in particular East Asia. ASEAN as the core to the East Asia, the worldwide country have signed the Free Trade Agreement, China is the first country to sign "China - ASEAN Comprehensive Economic Cooperation Framework Agreement" with ASEAN in 2002, and China also is the first extra- region country to become the CAFTA with ASEAN and the pact took effect on January 1, 2010. After China - ASEAN Free Trade Area established, Japan and South Korea, locate in Northeast Asia, speed up the negotiations and integration of regional economic and trade with ASEAN.
After China - ASEAN Free Trade Area established, urge Japan and South Korea have motivation to evaluate the "ASEAN plus three" regional economic integration and establish East Asia Free Trade Area is expecting to start operation in 2015, which will become the world''s third largest economy. Meanwhile, it shows the world''s economic center is moving towards in East Asia. Since national strategic interests, China takes humble posture to construct economic and trade cooperation with ASEAN; hence, China turn into the economic and trade leader in East Asia.
Return to power by the KMT government in 2008, Taiwan and China are conducting a series of agreements signed, especially the controversial economic cooperation agreement. "Cross-Strait Economic Cooperation Framework Agreement” signed with China on June 29, 2010, confirmed closer links to Taiwan - China ''s economic and trade, political relationship. Taiwan''s economic system gradually bond with China, while China will dominate East Asia through ASEAN; at this stage Taiwan government should avoid the economic and trade over-reliance on China, and find out that East Asian economic strategy to become one of the East Asian regional community, rather than a subsidiary of China.
The findings are as follows:
(a) the advantage of Taiwan:
1. According ECFA, 539 Taiwanese export items on the “early harvest” list have received preferential tariff treatment in mainland China.
2 Due to China - ASEAN Free Trade Area, USA has changed the layout of Asia-Pacific, and then urge joined and promoted TPP; Taiwan will have the opportunity into the TPP of the system, rather than too economically dependent on China.
(b) the disadvantages of Taiwan:
1. The government of the People''s Republic of China uses its influence on neighboring economic powers to prevent them from signing free-trade agreements with Taiwan, and narrow Taiwan''s participation in international affairs, is difficult to get rid of the China factor.
2. ECFA after the signing of closer relations between Taiwan and China, investment by Taiwanese businesses in China has continued to rise., but no help China and other countries to invest in Taiwan ECFA effect, the government exaggerated.
3 Taiwan companies are still centered on China and the businesses gradually reduce on world market, on the other hand investments in China are rapidly rise. Let Taiwan to move closer to the Chinese economy to a political.