Taiwan and China are expected to sign an economic cooperation framework agreement (ECFA) next week after finalizing their respective 'early harvest' lists Thursday. The signing of the ECFA is not a panacea that will automatically reactivate Taiwan's economic engine and create a 'golden decade.' The government needs to continue to work to improve Taiwan's investment environment, enhance its economic fundamentals and reduce unemployment. Although the ECFA will benefit 539 Taiwanese export items, it will also open Taiwan's market to 267 Chinese products. Finding ways to expand Taiwan's gains and reduce its losses is an immediate problem that the government needs to face. The government should also take into account the possible political repercussions, because any negative impact of the ECFA will be scrutinized under a magnifying glass by its opponents. Another challenge facing the government is whether it can conclude free trade agreements with other countries after the ECFA takes effect. Following the signing of the ECFA, Taiwan will certainly benefit more from closer economic and trade ties with China. The biggest challenge facing the anti-ECFA Democratic Progressive Party is whether it can present a new and convincing argument with regard to Taiwan's ties with China. (June 25, 2010) 