People can expect to see the peaceful development of relations across the straits, but the foundation for mutual trust is still fragile. The resumption of ARATS-SEF talks follows the principle of "first [resolve the] easy topics and then the hard ones, and first the economy and then politics." This principle highlights the crucial function of economic exchanges and cooperation in the overall development of cross-straits relations. The increasingly close direct economic and trade links across the Taiwan Straits will further stabilize bilateral relations and consolidate common interests. In the immediate following period, cross-straits negotiations should still focus on economic exchanges and cooperation. By further probing into the establishment of a bilateral economic cooperation mechanism, efforts should be intensified to promote the overall normalization of cross-straits economic and trade relations. This is a full reflection of the guiding principle for developing cross-straits relations that is to seek common well-being for people on both sides.

After all, the resumption of talks and the signing of the two agreements are just the first steps toward the peaceful development of cross-straits relations. Various problems are surely to follow, and people must have a clear mind about this. How to make cross-straits negotiations a long-term process and how to make the current negotiation mechanism an important platform to consolidate cross-straits mutual trust are still testing the wisdom of the Chinese on both sides of the straits.

1992 Consensus

In a formal discussion in Hong Kong in 1992, the Association for Relations Across the Taiwan Straits (ARATS) and the Straits Exchange Foundation (SEF) established the "1992 Consensus," which says both the Chinese mainland and Taiwan recognize there is only one China, but agree to differ on its definition. Under this consensus, both organizations held a series of negotiations on cross-straits economic cooperation during the following years. ARATS President Wang Daohan and SEF Chairman Koo Chen-fu met in Singapore and Shanghai in 1993 and 1998, respectively.

Negotiations between ARATS and SEF were halted after 1999 when Taiwan leader Lee Teng-hui put forth the "two states theory" on mainland-Taiwan relations in pursuit of "Taiwan independence."