¡@¡@¡@¡@¡@¡@¡@¡@¡@¡@Abstract ¡@¡@In 1997 when Hong kong was returned to mainland China, one state - two systems was promoted. Politics was governed by basic laws. But on economic aspect, it was not until the promotion of CEPA that the economic development was apparently led by the Government, which is completely different from Hong Kong's free marketing trade. Such is the focus of all. The treaty signed between China and Hong kong came into effect in January, 2004. The content mainly includes in three areas -tax -relief on trade products, the import of service trade and investment coporation. CEPA has been carried out for the passed two years, and Hong kong's economic has since climbing upward along side with the tide of the world. To the Taiwanese bussinessmen this has become an increased investment competition stress for them in mainland China. And in turn it might affect Taiwan's economic status. So the influence is profound. ¡@¡@This article first tries to understand the related theories of regional economic integration. Focusing on the present stage after China and Hong Kong signed the treaty CEPA, to observed the operation of the allotment of political strategy between the Central government, localities and Hong Kong. To further understand through refering to all the problems and observation analysis done by experts. To practically understanding the practice of political strategy allotment and the interaction between various regions. With an attempt of analysing the value of political strategies which could in turn benefit analysis study on the adjustment of various trade strtegies. Analysing each and every factor that might cause the future economic development of Hong Kong and Taiwan which includes Govrnments setting of political strategies, international factor and China factor. Try to totally comprehend the role plays by Hong Kong and its interaction with other regional and international economic and trade On the other hand , it is to merge this article's diverse analysis on the impact of CEPA against Taiwan. And to suggest countermeasures in regards to the development of such situation. So as to enhance our competitiveness and to avoid the risk of being cornered. ¡@¡@This context intents to grant the basic introduction of regional economic integration to those who are concerned with China - Hong Kong's CEPA. It also serives as a reference to broaden the sight of business administraters. Last but not least, your comments are most appreciated. Key words¡GCEPA ¡BTheory of integration,regional economic integration,Pan Pearl River Delta¡]PPRD¡^