Title:
EXPLORING THE TRADE RELATIONSHIP UNDER THE ASYMMETRIC INTERDEPENDENCE IN THE CROSS STRAIT

Authors:
Tsui Jung Ko ,Taiwan, Republic of China

Abstract:
Taiwan is an island-oriented economic system’s state, its economic development depends on the expansion of international trade, while the economic and trade cooperation is becoming more and more important in the cross-strait, Taiwan's trade dependence on the mainland is high, the trade surplus is increasing year by year, but there is a statistical gap on the cross-strait economic and trade, and the real gap needs to be further analyzed in order to know the truth fact. The methodology in this study is Literature Review, it try to know the main factors affecting Taiwan's economic development. The mainland is vast in land and rich in resources and rapid economic development; However, Taiwan is small area and poor resources, and it’s economic growth is slowing down; In fact, there is indeed an asymmetry in trade relations between the cross-strait economic situation, but the degree of interdependence is different. Taiwan has a competitive advantage in high-tech industries, a good investment and financial environment, and a continuous trade surplus with the mainland, and it can also be found that Taiwan has a competitive advantage from the trade special coefficients (TSC) index, and cannot be determined by the total amount of trade completely. Although the political and economic environment is different between the two sides of the strait, those of non-governmental work such as investment, consumption, and trade cooperation has become an important key factor in the economic development between Taiwan and the Mainland China.