ECFA - The Good and the Bad

The ECFA is a trade agreement signed last month between China and Taiwan. Previously, China had used its influence to prevent other countries from trading with Taiwan. With this new agreement, China and Taiwan can conduct limited trade with each other; effectively opening their boarders to each other. However, not everybody supports this new agreement. Taiwan has a history of people who strongly advocate independence from the PRC. They fear that this new agreement will only serve to further tie Taiwan to China. Also, as with any trade agreement, select businesses fear that the ECFA will negatively impact their income if their markets are being opened to another country. Most of all, Taiwanese people worry that mainland Chinese people will take their jobs due to the agreement.

Nonetheless, the big picture is more jobs and revenue created for both countries. Going beyond reasons of the economic, I believe that the ECFA will ease any remaining tensions between mainland China and Taiwan. Also, the negotiations provide an opportunity for Taiwan to be fully recognized in the eyes of China, to establish itself as more than a subsidiary of the PRC. Whatever the results, the two parties have had antagonistic relations with each other for well over half a century, and this agreement is the beginning of a friendlier environment for everyone.