After several years of negotiations, Taiwan joined the
World Trade Organization (WTO), the international organization that sets rules for most
international trade, on January 1, 2002. China fought to allow Taiwan to join the WTO only as a
"separate customs territory" and only after China obtained membership (which it did in December
2001). Trade and investment relations between China and Taiwan have boomed in recent years;
China has replaced the United States as Taiwan's export market. However, political tensions
between China and Taiwan remain high. In an effort to further boost U.S.-Taiwan economic ties
(and to lessen Taiwan's growing economic dependency on the mainland), some Members of
Congress have indicated support for a U.S.-Taiwan free trade agreement (FTA). This report will be
updated as events warrant.