This paper analyzes the trend, content, and mechanism of East Asian economic integration and its impact on Taiwan, including the assessment of trade creation and diversion, as well as investment creation and diversion of East Asian economic integration. Finally, this paper concludes with Taiwan's strategy in response to East Asian economic integration. The author suggests that Taiwan should actively advocate global trade and investment liberalization in order to overcome China's political objection against Taiwan. In terms of bilateral economic relations, Taiwan should promote free trade agreements or comprehensive economic partnership agreements with China, Japan, the United States, and Hong Kong. In particular, Taiwan should forge strategic economic partnerships with both the United States and Japan. In addition, Taiwan should sign trade and investment convenience agreements or comprehensive economic partnership agreements with Latin American and South East Asian countries. From the strategic perspective of consolidating its diplomatic relation and promoting the Asia-Pacific free trade regime, Taiwan should establish bilateral economic integration frameworks with its diplomatic allies. Finally, Taiwan should actively promote unilateral liberalization of its trade and investment regime.