Abstract: Under Cooperation Framework Agreement (ECFA), deepening cooperation in cross-strait logistics is an irreversible trend. This paper studies the operation of joint venture and cold chain logistics facilities between Taiwan enterprises and Mainland enterprises and influence of ECFA protocol implemented by government on alliance. It is found that, the alliance can be optimally operated in the case of centralized decision-making game model since the retail price, the investment to infrastructure and the profit are all optimal. With the effect of ECFA improved, wholesaling price, retail price, the demand and the profit increase accordingly, and the increasing speed of demand is higher than those two prices. Therefore, the corporations across Taiwan strait should strengthen trust, and deepen cooperation in various ways to increase the ECFA effect.

Key words: ECFA, logistics alliance, Cross-strait relationship