In recent year, there have been significant developments in the peace and stability in cross-Strait relations, which is critical to the international relations in East Asia. In addition, the interaction among mainland China, US, and Taiwan is increasing as they are becoming more active in regional multilateral institutions. This situation raises the puzzle that whether institutions, economic interdependence can facilitate peace and stability among China, Taiwan and the United States. If the answer is yes, what are these causal mechanisms? Liberal theories of international relations emphasize the role of international institutions on fostering cooperation by reducing obstacles. such as uncertainty and transaction costs.. that stand in the way of mutually beneficial agreements between states. In addition, they also hold that interdependence decreases the incentives for conflict and war because states become reluctant to disrupt or jeopardize the welfare benefits of open economic exchange. This paper unifies these theoretical insights to explore the role of economic interdependence, institutions on the stability and cooperation between mainland China, Taiwan, and the U.S. ..PAT.-Unpublished Manuscript [ABSTRACT FROM AUTHOR]