The Straits Exchange Foundation (SEF) is a semi-official organization in Taiwan that is responsible for contacting and negotiating with Mainland China through a counterpart organization. Although the SEF is technically a private organization, it is funded by the government and answers to the Mainland Affairs Council, Taiwan's top China policy-making body. The SEF is the only institution in Taiwan that is allowed handle cross-strait affairs.
In Mainland China, the SEF's counterpart is the Association for Relations Across the Taiwan Straits or ARATS. Both organizations were established in 1991. The creation of this communication channel marked a new stage in cross-strait relations after nearly 50 years of isolation. In 1993, the chairmen of the two bodies met in Singapore for historic talks that laid a foundation for resolving cross-strait issues through dialogue and negotiations.
ARATS broke off contact with the SEF in 1995 and again in 1999 because it was not happy with the behavior of Taiwan's then-President Lee Teng-hui. Taipei-Beijing relations remained tense throughout the eight-year presidency of Chen Shui-bian.
It was not until 2008, when Kuomintang party member Ma Ying-jeou won the presidency, that the two sides resumed talks. The first round of talks in June 2008 inBeijing led to the beginning of direct cross-strait weekend flights. The second round, which took place in Taipei in November of the same year, resulted in four more agreements -- direct mail service, direct shipping links, expansion of direct flight services and food safety. The historic talks in Taipei marked the first visit of an official from the mainland to Taiwan in 60 years.