Economic Cooperation Framework Agreement

ECFA

Economic Cooperation Framework Agreement
Type	Free Trade Agreement
Signed	June 29, 2010; 11 years ago (2010-06-29)
Location	Sofitel Forebase Chongqing Hotel, Chongqing, China
Effective	September 12, 2010; 11 years ago (2010-09-12)
Signatories	Chairman Chiang Pin-kung President Chen Yunlin
Parties	Straits Exchange Foundation Association for Relations Across the Taiwan Straits
Language	Traditional Chinese Simplified Chinese
zh:海峽兩岸服務貿易協議 at Wikisource

Economic Cooperation Framework Agreement
Traditional Chinese	兩岸經濟合作架構協議(定)
Simplified Chinese	两岸经济合作架构协议(定)
showTranscriptions Standard Mandarin Hanyu Pinyin Liǎng'àn Jīngjì Hézuò Jiàgòu Xiéyì Yue: Cantonese Jyutping loeng5 ngon6 ging1 zai3 ha6 zok3 gaa3 kau3 hip3 ji5 Southern Min Hokkien POJ lióng-gān-keng-chè-ha̍p-chok-kè-lòu-hia̍p-gī
Alternative Chinese name
Traditional Chinese	兩岸經濟協議(定)
Simplified Chinese	两岸经济协议(定)
showTranscriptions Standard Mandarin Hanyu Pinyin Liǎng'àn Jīngjì Xiéyì Yue: Cantonese Jyutping loeng5 ngon6 ging1 zai3 hip3 ji5 Southern Min Hokkien POJ lióng-gān-keng-chè-hia̍p-gī

Politics of China
show Leadership Leadership generations Succession of power Hu–Wen Administration (2002–2012) Xi–Li Administration (2012–2017) Xi Core Administration (since 2017) 4th Leadership Core: Xi Jinping 19th Party Politburo: Xi Jinping 13th State Council: Li Keqiang Current state leaders Current provincial leaders National leaders Orders of precedence Paramount leader: Xi Jinping Communist Party leader: Xi Jinping Head of state: Xi Jinping Head of government: Li Keqiang Congress Chairman: Li Zhanshu Conference Chairman: Wang Yang Commander-in-chief: Xi Jinping Politburo Standing Committee members Related systems Democratic centralism Collective leadership Organization Department Elections Civil service
show Communist Party History Principal leaders Constitution Admission Oath (Article 6) Organization National Party Congress (19th) Central Committee (19th) General Secretary (list) Xi Jinping Central Politburo (19th) Standing Committee (list) Central Secretariat Top-ranked secretary: Wang Huning Central Military Commission Chairman: Xi Jinping Vice-Chairman: Xu Qiliang, Zhang Youxia National Security Commission Chairman: Xi Jinping Vice-Chairman: Li Keqiang, Li Zhanshu Office Chief: Ding Xuexiang Comprehensively Deepening Reforms Commission Director: Xi Jinping Deputy Directors: Li Keqiang, Wang Huning, Han Zheng Secretary-General: Wang Huning Financial & Economic Affairs Commission Director: Xi Jinping Deputy Director: Li Keqiang Office Chief: Liu He General Office Director: Ding Xuexiang  [zh] Chief: Ding Xuexiang Central Security Bureau Central Guard Unit Office of the Central Secrecy Commission Organization Department Head: Chen Xi Central Commission for Discipline Inspection (19th) (19th) Secretary: Zhao Leji Provincial committee Standing committee Secretary Deputy secretaries
show United Front Political Consultative Conference National Committee Chairman: Wang Yang Vice-Chairpersons Top-ranked: Zhang Qingli Secretary-General: Xia Baolong Political parties: CPC (ruling) United Front Work Department Head: You Quan RCCK CDL CDNCA CAPD CPWDP CZGP JS TDSGL Historical parties: KMT CDSP CYP Federation of Industry and Commerce People's organizations
show Ideology Marxism–Leninism Mao Zedong Thought Socialism with Chinese characteristics Deng Xiaoping Theory Primary stage of socialism Four Cardinal Principles Three Represents Scientific Outlook on Development Harmonious Socialist Society Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era Chinese Dream Four Comprehensives
show Constitution Law Constitution Previous constitutions 1954 1975 1978 "People's democratic dictatorship" (Article 1) Democratic centralism (Article 3) Constitutional oath of office (Article 27) Protection of human rights (Article 33) Freedom of religion (Article 36) Chinese legal system Civil law tradition Socialist law tradition Laws Legislation Law List of statutes General Principles of the Civil Law (to 2020) Civil Code (From 2021) Marriage Law Labour law Labour Law Labour Contract Law Property law Property Law Intellectual property law Patent law Administrative law Administrative Procedure Law Criminal law Capital punishment Capital offences Death sentence with reprieve
show Legislative National People's Congress (13th) Members Plenary sessions Voting results Presidium Standing Committee Chairman: Li Zhanshu Vice-Chairpersons Top-ranked: Wang Chen Secretary-General:  [zh] Special committees Ethnic Affairs Constitution and Law Supervisory and Judicial Affairs Financial and Economic Affairs Education, Science, Culture and Public Health Foreign Affairs Overseas Chinese Affairs Environment Protection and Resources Conservation Agriculture and Rural Affairs Social Development Affairs Legislation Law Elections
show Presidency President (list): Xi Jinping Presidential spouse: Peng Liyuan  [zh] Chief: Ding Xuexiang Vice-President: Wang Qishan
show Executive State Council (Central People's Government) Li Keqiang Cabinet II Premier (list): Li Keqiang Vice-Premiers (list) Han Zheng Sun Chunlan Hu Chunhua Liu He State Councilors Wei Fenghe Wang Yong Wang Yi Xiao Jie Zhao Kezhi Secretary-General: Xiao Jie Cabinet-level departments National Development & Reform Commission Central bank National Audit Office General Office Secretary-General Deputy Secretary-Generals State-owned Assets Supervision & Administration Commission most Central Enterprises
show Military Central Military Commission (CMC) Chairman (supreme commander): Xi Jinping Vice-Chairman: Xu Qiliang Zhang Youxia Members: Wei Fenghe Li Zuocheng Miao Hua Zhang Shengmin Departments: General Office Director: Zhong Shaojun Joint Staff Dept. Chief: Li Zuocheng Political Work Dept. Director: Miao Hua Logistic Support Dept. Equipment Development Dept. Training and Administration Dept. National Defense Mobilization Dept. Discipline Inspection Commission Secretary: Zhang Shengmin Strategic Planning Office Reform & Organizational Structure Office Int'l Military Cooperation Office Audit Office Offices Administration Agency National armed forces: People's Liberation Army Theater commands People's Armed Police China Coast Guard Militia State Council National Defense Mobilization Commission Chairman: Li Keqiang Ministry of National Defense Minister: Wei Fenghe Ministry of Veterans Affairs State Administration for Sci., Tech. & Industry for National Defense Military history Armed conflicts Military modernization Military reform since 2015 CMC Leading Group for Military Reform Leader: Xi Jinping
show Supervision Corruption in China Anti-corruption campaign since 2012 CPC Central Commission for Discipline Inspection (19th) Secretary: Zhao Leji Deputy Secretaries Yang Xiaodu Zhang Shengmin Liu Jinguo Yang Xiaochao Li Shulei Xu Lingyi Secretary-General: Yang Xiaochao National Supervisory Commission Director: Yang Xiaodu Central Leading Group for Inspection Work Leader: Zhao Leji Commission for Discipline Inspection of the Central Military Commission Secretary: Zhang Shengmin Independent Commission Against Corruption (Hong Kong) Commission Against Corruption (Macau)
show Judiciary Law enforcement CPC Central Politics and Law Commission Secretary: Guo Shengkun Supreme People's Court President: Zhou Qiang People's Courts Judicial Police Supreme People's Procuratorate Prosecutor General: Zhang Jun People's Procuratorates Judicial Police State Council Ministry of Public Security Minister: Zhao Kezhi (State Councilor) Public Security Organs People's Police State Immigration Administration Local public security bureaus Ministry of State Security Minister: Chen Wenqing State Security Organs People's Police Ministry of Justice Minister: Fu Zhenghua Judicial Administrative Organs People's Police  [zh] Office for Safeguarding National Security of the CPG in the HKSAR Urban Management (chengguan) Judiciary of Hong Kong Court of Final Appeal Department of Justice Prosecutions Division Law enforcement in Hong Kong Security Bureau Regular Disciplined Services Hong Kong Police Force Judiciary of Macau Court of Final Appeal Secretariat for Security Macau Security Force  [zh] Public Security Police  [zh]
show Propaganda Central Leading Group for Propaganda and Ideology Leader: Wang Huning Central Guidance Commission on Building Spiritual Civilization Director: Wang Huning Deputy Director: Huang Kunming Central Propaganda Department Head: Huang Kunming National Press and Publication Administration China Film Administration [zh] State Council Information Office China Daily Ministry of Culture and Tourism National Radio and Television Administration China Media Group China Central Television China Global Television Network China National Radio China Radio International Xinhua News Agency Reference News China News Service People's Daily Global Times China Today Censorship in China Radio jamming Overseas censorship of Chinese issues Media of China Internal media Publishing industry in China Internet in China Internet censorship Great Firewall Great Cannon Central Cyberspace Affairs Commission Director: Xi Jinping Deputy director: Li Keqiang Cyberspace Administration of China Director: Xu Lin
show Hong Kong Macau Central Leading Group on Hong Kong and Macau Affairs Leader: Han Zheng HK & Macau Affairs Office Director: Zhang Xiaoming Liaison Office in Hong Kong Liaison Office in Macau One country, two systems Special administrative regions Hong Kong Basic Law Chief Executive: Lam Cheng Yuet-ngor Hong Kong SAR Government Politics of Hong Kong Independence movement Mainland & HK CEPA Macao Basic Law Chief Executive: Chui Sai On Macau SAR Government Politics of Macau Mainland & Macau CEPA
hide Cross-Strait relations Cross-Strait relations Chinese Civil War One-China policy Political status of Taiwan Republic of China on Taiwan Taiwan Area "Taiwan Province", PRC Taiwan independence movement Anti-Secession Law Economic Cooperation Framework Agreement Cross-Strait Service Trade Agreement Chinese unification Central Leading Group for Taiwan Affairs Leader: Xi Jinping Deputy Leader: Wang Yang Taiwan Affairs Office Director: Zhang Zhijun Association for Relations Across the Taiwan Straits
show Foreign relations Central Foreign Affairs Commission Director: Xi Jinping Deputy Director: Li Keqiang Secretary-General: Yang Jiechi Ministry of Foreign Affairs Minister: Wang Yi (State Councilor) Spokespersons Diplomatic missions Diplomatic missions of China / in China Foreign aid from China / to China International Development Cooperation Agency Ministry of Commerce Exim Bank of China China Development Bank Belt and Road Initiative Silk Road Fund Asian Infrastructure Investment Bank BRICS New Development Bank Ministry of National Defense International Military Cooperation Office NPC Foreign Affairs Committee CPC International Liaison Department State Council Information Office State Administration of Foreign Experts Affairs Overseas Chinese Affairs Office Chinese nationality law Chinese passports (Hong Kong; Macau) Visa requirements for Chinese citizens (Hong Kong, Macau) Visa policy of China (Hong Kong; Macau) National Immigration Administration Five Principles of Peaceful Coexistence Panda diplomacy Beijing Consensus Sino-British Joint Declaration One country, two systems China and the United Nations China and the World Trade Organization Shanghai Cooperation Organisation China–Africa relations China–Caribbean relations China–European Union relations China–Pacific relations China–Russia relations China–United States relations
show Related topics Administrative divisions Hukou system Family planning Ethnic minorities Communism
China portal Other countries
v t

The Economic Cooperation Framework Agreement (ECFA) is a preferential trade agreement between the governments of the People's Republic of China (mainland China, commonly "China") and the Republic of China (known as "Taiwan") that aims to reduce tariffs and commercial barriers between the two sides. The pact, signed on June 29, 2010, in Chongqing,^[1][2] was seen as the most significant agreement since the two sides split after the Chinese Civil War in 1949, since neither government recognize the other as "countries".^[3] It was expected to boost the then-current US$197.28 billion bilateral trade between both sides.^[4]

Background[]

The government of the People's Republic of China uses its influence on neighboring economic powers to prevent them from signing free-trade agreements (FTAs) with the Republic of China ("Taiwan") which China claims that the ROC has been eliminated and so Taiwan is part of its territory.^[5][6] Instead, under the leadership of the Kuomintang, Taipei was motivated to sign the ECFA with mainland China partly in hope that once it has this agreement the PRC will stop pressuring other countries to avoid such agreements with Taiwan,^{[citation needed]} as well as to counteract the negative consequences of China's free trade agreement with ASEAN.^[7] The ECFA has been compared with the Closer Economic Partnership Arrangements mainland China signed with the Special Administrative Regions: Hong Kong and Macau.^[8]

The deal is thought to be structured to benefit Taiwan far more than mainland China. The "early harvest" list of tariff concessions covers 539 Taiwanese products and 267 mainland Chinese goods. The advantage to Taiwan would amount to US$13.8 billion, while mainland China would receive benefits estimated at US$2.86 billion.^[9] Mainland China will also open markets in 11 service sectors such as banking, securities, insurance, hospitals and accounting, while Taiwan agreed to offer wider access in seven areas, including banking and movies.^[10]

Financial reforms were kicked off on January 16, 2010 with the signing of three Memoranda of Understanding between Taiwan's Financial Supervisory Commission Chairman Sean Chen and three counterpart agencies in Beijing for Banking, Insurance and Securities. The FSC is hoping that Taiwan will get more leniency in the hurdles set by the Chinese government for foreign players. These hurdles have limited the growth of these foreign players relative to their local peers.^[11]

Signing and review[]

The negotiation process took place over several rounds. Substantive yet informal discussions regarding the ECFA initially took place during the 4th round of SEF-ARATS discussions in December 2009. During this time the delegates for China and Taiwan laid down the framework for the first round of ECFA talks^[12] which took place on January 26, 2010 in Beijing. Kao Koong-lian, secretary general and vice chairman of the Straits Exchange Foundation (SEF), led the 13 member Taiwanese delegation while Zheng Lizhong, Vice President of the Association for Relations Across the Taiwan Straits (ARATS), represented China's interests.^[13] Subsequent rounds of ECFA talks took place on March 31, 2010 in Taipei and June 13, 2010 in Beijing.^[13][14] The final agreement was signed during the 5th round of SEF-ARATS talks on June 29, 2010 in Chongqing.^[1][15] Chiang Pin-kung, the chairman of Taiwan's SEF represented Taiwan.^[16][17] Chen Yunlin, the President of ARATS, represented mainland China.^[1][18] Taiwan's Executive Yuan approved the ECFA on July 2, 2010^[19] and the Legislative Yuan (parliament) approved the deal on August 17, meaning the deal became law on January 1, 2011.^[20] The ECFA came into effect on September 12, 2010.^[21][22]

Issues[]

Debate[]

There is currently much controversy in Taiwan over the ECFA, including over potential effects on local Taiwanese businesses,^[23] as well as on how the government has presented it to the public. The opposition Democratic Progressive Party (DPP) and other pro independence groups believe the ECFA is a cover for unification with China through inextricably linking the two economies. It neither accord the same rights as a Free Trade Agreement which will reduce manufacturing jobs and average salary, nor accelerate capital outflow and brain drain of management and technology expertise.^[24] The opponents of the ECFA also indicated concerns about allowing the influx of mainland Chinese white-collar workers or professionals to work in Taiwan which could put the job security of locals at risk.^[25] According to Jie Huang of China Review, it is a means to maintain peace in cross-Strait relations and "ultimately to reach the goal of reunification."^[7] A debate was held and televised on April 25, 2010.

Referendum Proposals blocked by Ma administration[]

In 2010, the originally-from-China pan-blue-camp-controlled Referendum Review Committee several times rejected referendum proposals against Ma Ying-jeou administration's economic agreement with China^{[26][27][28][29]} even the numbers of petition forms for a referendum has been reached and nearly 200,000 signatures has been collected.^{[30][31][32][33]} The public opinion survey shows a majority of respondents opposed the signing of that package with China and many experts and politicians among protesters sees a referendum for this as essential.^[34][35][36]

Protest[]

Tens of thousands of people turned to the streets to protest against the signing of the ECFA which would boost two-way trade organized by the Sunflower Student Movement, a popular movement that had the general support of, but was not led by, Taiwan's opposition Democratic Progressive Party.^[37] A spokesman for the DPP said the trade agreement with China will damage the local economy and undermine Taiwan's sovereignty as he was against the One China market concept.^[38] President Ma Ying-jeou responded that the signing would not lead to a One China market.^[39]

Many protesters fear the agreement will eventually lead Taiwan to the unification with mainland China.^[40] The protest originally estimated a turnout of 100,000 people.^[41] The DPP said 100,000 took part in the protest, while the police said there were 32,000 people.^[37] The demonstration started at 3pm and dismissed by 7pm.^[38]

Clash in the legislature[]

On July 8, 2010 a Legislative Yuan meeting was held. The DPP insisted the ECFA agreement be reviewed article by article. That demand was rejected by the KMT caucus.^[42] A six-minute fight then broke out among the legislators. Wang Jin-pyng was at the podium surrounded by other KMT legislators. Liu Chien-kuo, (蘇震清) and (郭玟成) attempted to get to him and failed. Lawmakers threw paper, water and trash at each other. KMT legislator (吳育昇) was hit in the head by a clock. He had to be transported to National Taiwan University Hospital.^[42][43] A number of other people were involved in the scuffle. Two KMT legislators held DPP chairwoman Tsai Ing-wen responsible for the clash.^[42]

2020 termination speculation[]

In June 2020, Chinese state media mentioned that it might end the agreement after triggering the 180-day withdrawal notice,^[44] though this did not occur. A Taipei Times editorial called the ECFA "a weapon in Beijing’s armory to impoverish Taiwan",^[45] stating that it has led to a Taiwanese investment of NT$850 billion in China compared to only NT$200 gained in export taxes, attributing Taiwan's declining economic growth to it, and criticizing both the KMT (for supporting the pact) and the DPP (for doing little to rebut the KMT).

See also[]

• Cross-Strait relations
• Cross-Strait Service Trade Agreement
• Political status of Taiwan
• Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA)
• Mainland and Macau Closer Economic Partnership Arrangement (CEPA)

References[]

External links[]

Wikimedia Commons has media related to ECFA.

Wikisource has original text related to this article: ECFA

• English translation of the Economic Cooperation Framework Agreement Ministry of Economic Affairs, Republic of China
• Taiwan Affairs Office of the State Council
• Straits Exchange Foundation