Abstract
In this article, I investigate the impacts of cross-strait trade on income inequality and Taiwanese voters' political behavior. According to time-series macroeconomic data, I find strong associations between the trade dependence on China and poverty rate in Taiwan. On the individual level, a class analysis of national surveys conducted in 2010-12 shows that the winners of cross-strait trade are the capitalists and new middle classes. The deterioration of class inequality affected the political attitudes and voting behaviors of the members of different classes. The capitalists and new middle classes subjectively believed that open trade benefited their family economy. In contrast, the workers and self-employed believed that expanding trade with China damaged their family economy and increased the gap between the rich and the poor. The different attitudes of cross-strait trade connected with voting behavior: Supporters of trade, mostly capitalists and new middle classes, preferred to sustain the pan-blue camp; while those opposing trade, mostly the working class and self-employed, preferred to support the pan-green camp.