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The further development of economic globalisation causes the status and effect of economic factors to continuously increase in international relations. This new characteristic is increasingly apparent in cross-strait relations as the course of the reform and opening-up in mainland China, as well as the development of cross-strait economy and trade. Particularly since the mainland and Taiwan signed Economic Cooperation Framework Agreement (ECFA) in 2010, economic development has become one of the most important issues between the two sides. Since the détente between the mainland and Taiwan in the 1980s, cross-strait economics and trade have displayed two primary characteristics. First, the volume of trade, the amount of investment, and especially the economic interdependency between the two sides are all constantly increasing. Second, although under the influence of fluctuating political relations, the cross-strait economic relationship is still maintaining a stable development tendency. Due to the impact of economic globalisation, both the mainland and Taiwan are re-examining their own economic interests and have realized that economic relations form the cornerstone of their relationship. The expanding common interest which is generated from the deepening cross-strait economic exchanges between the mainland and Taiwan is becoming the key factor in both governments’ political considerations. Cross-strait economic and trade development is thus becoming an interests mechanism which maintains the framework of peace and stability across the Taiwan Strait. This thesis argues that cross-strait economic interdependence and cross-strait relations are inherently and interactively related. From the viewpoint of Neoliberalist Theory and Interdependent Theory, and on the basis of the development course of cross-strait economy and trade, this article analyzes the interactive effect between the cross-strait economy and cross-strait relations, especially the political relations from many factors such as the signing of ECFA, the impact of Taiwanese businessmen’s investment in the mainland, and the mainland's Taiwan policy. This thesis concludes that on the one hand, the increase in cross-strait economic interdependence will promote peace and stability across the Taiwan Strait. On the other hand, stable cross-strait relations will also provide a policy guarantee and a peaceful scope for the future development of the relationship between mainland China and Taiwan.

Cross-Strait Economic Interdependence and the Prospects for Peace between Mainland China and Taiwan