This article aims at establishing a generalized model of economic relations between Taiwan and Mainland China, by way of analyzing the complicated economic interests, security considerations, and negotiating behavior between Taiwan and Mainland China. From an economic perspective, this article argues that cross-strait economic exchanges have made positive contributions to Taiwan's economic development. From a security perspective, this article asserts that cross-strait economic exchanges have brought little extra burden on Taiwan's security on account of the transformation of Mainland China's internal political and economic structure and of the formation of the "common-interest community of international labor-division" among Taiwan, Mainland China and the international community. Finally, this article attempts to combine economic and security dimensions with a view to construct a model for negotiation between Taiwan and Mainland China. Based on economic and security analysis, this article concludes that Taiwan should negotiate with Mainland China on cross-strait economic cooperation in order to maximize Taiwan's overall interests.