The THEC was set up in May 2010 in a symbiotic relationship with the Hong Kong ECCPC, similar to that between bodies representing Taiwan and mainland China in cross-strait talks, under a slightly hands-off approach that is often known as the "white glove" policy. The two councils, both with participation by high-ranking ministers, are incorporated as legal entities but will be authorised by the two governments to sign pacts.
The two bodies were established against a background of strengthened Hong Kong-Taiwan links and trade, which match improved China-Taiwan relations.
The THEC has two major committees, one on cultural and one on economic co-operation. This reflects Taiwan's broadbrush approach to its relationship with Hong Kong, and contrasts with the narrower business focus of the Hong Kong side.