This paper discusses and analyzes the cross-Strait economic policies of the KMT and the DPP in three presidential elections since 2008. The dilemma between the necessity of regional economic integration and the rise of the Taiwanese identity as a result of democratization has led to signs of convergence in terms of cross-Strait economic policies between the two parties in response to international economic environment despite their difference of emphasis and their priorities in facing the global economy. With reference to the implications for the future politics of Taiwan, this study suggested that the growing importance of economic agenda, which bridges the Blue-Green divide, is actually conducive to democratic consolidation in Taiwan. Democratic consolidation has simultaneously reinforced the concept of “stateness” in the development of the Taiwanese identity, which has, in return, challenged the spillover effect of cross-Strait economic relations
