ABSTRACT
Since President Ma Ying-jeou of the Kuomingtang (KMT) came into office in
May 2008 he has taken more initiatives to develop a deeper economic relation-
ship with China than any of his predecessors, as he attempts to restore Taiwan’s
economic growth.1 These initiatives include allowing direct flights across the
Taiwan Strait, permitting Chinese students to study in Taiwanese universities,
launching institutionalized trade talks, and – above all – the signing and
implementation of the Economic Cooperation Framework Agreement (ECFA).
Many financial analysts are predicting that this deeper economic relationship
