Economic globalization at post-Cold War era brings new opportunities and challenges for economic development in each country. Regionalism is the main feature of multipolar international systems and globalization and regionalization are two main powers to push current international politics and economy development forward. Since China reformed and opened the policy in 1978, fast economic growth has made China become the regional leader to obtain regional politics and economy advantages through good-neighborly diplomacy. Moreover, ASEAN consists of medium and small countries and has to build up the safety for the Nationals and regions as so to strengthen the integration of politics and economy. Due to the painful lessons of Asian Financial Crisis in 1997, the turning point contributes both parties to establish ¡§China-ASEAN FTA¡¨ in 2010. Taiwan is located at the center of west Pacific which is the major juncture of North East Asia and Southeast Asia and has the superiority of geographical conditions. Taiwan is a trade-oriented country and Taiwan, China and ASEAN have close economic and trade relations. Taiwan depends deeply on China¡¦s economy and trade and the establishment of ¡§China-ASEAN FTA¡¨ will cause crowding effect to Taiwan¡¦s economy and trade. Due to international blockaded by China¡¦s ¡§one China¡¨ policy, ASEAN maintains separation strategy of economy and trade to Taiwan. During the economic globalization, advancing Regional Trade Agreement or allying with bilateral trade has become the strategy for each country to boost global competitiveness through regional economic integration. Therefore, stable domestic political environment is one of the main elements to affect national diplomacy and security policy. Cross-Strait relations in politics are full of complex confrontation and contradiction. After Ma Ying-jeou exercised the power, both sides opened the negotiation way and economic issues have become the most important focus. Both sides started with theory of neofunctionalism and the precondition is to put the controversy about both sides¡¦ sovereignty aside but normalize the economic and trade relations. Both sides reopened the negotiation which is the foundation to build up mutual trust and reciprocity and mutual benefit is the ultimate goal. Opposite ideology shall be put aside and Economic Cooperation Framework Agreement shall be signed to ensure the economic safety and cooperation between both sides in response to the impact of establishing ¡§China-ASEAN FTA¡¨ to settle a stable economic relation to both sides.