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improvements could be seen both in Mainland China and in Taiwan in the 1990s. This includes not only cross-straight economic relations but also their respective economic relations with the rest of the world. Mainland China began her internal innovation and opening policies from the late 1970s. At the same time, Taiwan also achieved her exceptional economic success because of the appropriate measures taken by his government.

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interaction and cooperation have become a reality: from Mainland China’s tourists on the A Li Mountain, to the agriculture products appearing in Shang Hai’s markets, to billions of dollars of Taiwan investment and millions of Taiwanese investors on the Mainland, to the involvement of APEC and WTO in Taiwan and Mainland.

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the interaction start a new conflict and tension, or will it offer more opportunities for both strait sides? The paper discusses the economic interaction between Taiwan and mainland China and argues whether it will be good or bad in the not far away future.