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 of East Asian economic integration and the elaboration of the result and shortcomings of quantitative analyses. 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 with China, Japan, the United States, Hong Kong, and Taiwan’s diplomatic allies. Particularly, Taiwan should forge strategic economic partnership 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.