Economic Interaction Between Taiwan and Mainland China and Its Influence On Both Economies

  • Charng Kao
  • Wen-Thuen Wang


Since the early 1980s, economic exchanges between Taiwan and mainland China has reached significant levels. This increasing interaction is partly the result of mainland China’s economic reform policy, which has been ongoing since the late 1970s, and China’s plan to develop its economy by opening up the country to the outside world. Enhanced cross-Strait exchange has also been due to mainland China’s more moderate stance regarding Taiwan, a stance that was gradually adopted beginning in 1980.


Foreign Direct Investment Economic Exchange Parent Company Bilateral Trade Intraindustry Trade 
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© Shiping Hua 2006

Authors and Affiliations

  • Charng Kao
  • Wen-Thuen Wang

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