Taiwan is taking a cautious approach to the Chinese market, even though economic co-operation between Taiwan and China offers the potential for Taiwanese banks to expand beyond their highly competitive domestic market.
The Economic Co-operation Framework Agreement (ECFA) between Taiwan and China, although one of the most significant agreements in modern history between the two countries, is still in its early stages of development. But, in the long term, it has the potential to change Taiwan's competitive landscape and reconfigure the country's market, once relations are fully liberalised.