Taiwan Election Under China’s Threat: Suspension of Tariff Reductions on Taiwan Goods

Ahead of the Taiwanese presidential election, China has exerted pressure by suspending tariff reductions on certain Taiwan-made products and threatening further trade sanctions.

On the 27th (local time), Ma Xiaoguang, the spokesperson for the Taiwan Affairs Office of the State Council, referenced the Economic Cooperation Framework Agreement (ECFA) signed in 2010 between China and Taiwan during a regular briefing, stating, “This is being implemented on the political foundation of the 1992 Consensus (a 1992 agreement recognizing ‘one China’ but allowing each side to use its own terminology).”

Under the ECFA signed in 2010, China and Taiwan designated 267 Taiwanese and 539 Chinese products as early harvest items in January 2013, applying for tariff-free benefits.

In a recent statement, Ma highlighted the challenges in resolving the ECFA issue, attributing them to the Democratic Progressive Party (DPP) authorities’ steadfast commitment to Taiwan’s independence and refusal to acknowledge the 1992 Consensus. He expressed concern that these stances undermine the political foundation essential for cross-strait negotiations.

Ma further emphasized the seriousness of the situation, stating that if the DPP authorities maintain their stance on Taiwan’s independence without reconsidering, he supports the idea of relevant departments taking further actions as permitted by regulations.

Previously, the Customs Tariff Commission of the State Council of China announced on the 20th that it would suspend the tariff reduction applied to 12 Taiwanese chemical products under the ECFA from the 1st of the following month and impose tariffs according to current regulations. Taiwan has criticized this decision as politically motivated, aiming at the presidential election.

By. Min Jae Kwak