Heads of Association for Relations Across the Taiwan Straits (ARATS) and Straits Exchange Foundation (SEF) signed the Economic Cooperation Framework Agreement (ECFA) in Chongqing on June 29 of 2010. MOFCOM spokesman said that the ECFA, in line with the rules of the WTO, is combined with the status quo and characteristics of the economic development of Chinese mainland and Taiwan by the principle of equality and mutual benefit. It takes fully consideration of features of Mainland and Taiwan and is a special arrangement aiming to boost the all-round and in-depth economic cooperation. The signing of ECFA also signifies that the economic relations between Chinese mainland and Taiwan enter into a stage of institutionalized cooperation. The ECFA will create a new pattern of great communication, cooperation and development between Mainland and Taiwan, provide strong support for the two sides to jointly participate in the new round of international competition, and also provide institutional assurances for the gradual normalization of the cross-Strait economic ties and for further liberalization of relations in the future.

According to the spokesman, the ECFA is an inevitable result of mutually-beneficial, complementary and mutually-dependent trade and economic exchanges over the past three decades. With the rapid development of economic globalization and regional economic integration, especially since May of 2008, the cross-Strait relations have realized historical transition: the consultation between SEF and ARATS which had been broken off ten years ago was resumed; direct links in mail, transport and trade have been basically reached; and the exchanges and cooperation in trade and economy across the Taiwan Straits has been ever closer. Moreover, the spokesman said that Chinese mainland and Taiwan had realized that they should not fall behind the global trend of regional cooperation and the desire of cross-Strait compatriots to establish institutionalized economic cooperation is strengthening.

The spokesman also said that the ECFA seek to gradually reduce cross-Strait barriers to trade and investment, to create a fair environment so as to enhance cross-Strait trade and investment relations, and to establish a cooperation regime conducive to common prosperity and development. Compared with other regional economic cooperation agreements, the ECFA has features as follows:

Firstly, the ECFA has outstanding features or characteristics of Chinese mainland and Taiwan. The two parties have focused on overall situation, putting aside disputes, seeking common grounds, stressing pragmatic negotiations and making reasonable arrangements. Besides, the two parties have stressed the demand for development, fully considered each other's concerns and formed the “Early Harvest Plan” which is a large-scale one and covers various areas according to the complementarity of industries, enabling people of the two sides to enjoy the benefits from trade liberalization. Moreover, Fully taking into consideration the current economic and social conditions of Taiwan, the ECFA did not touch upon opening market on agricultural goods, the uncompetitive industries of Taiwan , and dispatching mainland labor to Taiwan, which showed the greatest sincerity and goodwill of mainland.

Secondly, the ECFA is open and gradual. According to the ECFA, Chinese Mainland and Taiwan will continue negotiations on many individual agreements concerning goods and service trade and investment after the ECFA takes effect so as to gradually boost the opening-up between the two parties, maximize the mutual complementarity of advantages and realize mutual benefits and win-win outcome.

Thirdly, the ECFA is all-round and comprehensive. It covers main economic activities between Chinese mainland and Taiwan, and establishes the basic structure and development program of the economic cooperation between the two sides in the future. With an eye on instant economic benefits after the signing and the improvement of the industrial international competition, the ECFA prefers to the long-term development of the two economies and benefits of the cross-Strait people.

Finally, the spokesman stated that the signing of the ECFA provided an institutional platform for the economic cooperation between Chinese mainland and Taiwan, but, it was only a beginning of the institutional cooperation. Then, experts of SEF and ARATS will finish the negotiations on those individual agreements as soon as possible, constantly perfect the ECFA and pragmatically boost to establish relevant cooperation mechanisms in various sectors so as to make the people across the Taiwan Straits enjoy the benefits caused by more free and convenient investment and trade.