Abstract
Providing China production and management skills as well as capital for agriculture development, Taiwanese merchants' agriculture investment in China not only accelerates agriculture development in China but also undermines that in Taiwan. This direct shock to Taiwan is especially evident in the competition of some main export markets. This study, exploiting the model of CMS, tries to probe into the agricultural product competition between China and Taiwan in some markets, say Japan, US, and Korea, from the year 1992 to the year 2007. The finding indicates that most Taiwanese agricultural products are replaced by Chinese ones. The cross-strait interchange, therefore, turns out to be a loser Taiwan in the international market competition. Our government, in light of this, should promptly enact some complementary measures to cushion the negative effect of the cross-strait interchange on Taiwan in the international market.