Taiwan protests against China’s suspension of tariff cuts (Update)

Taipei, May 31 (CNA) The Taiwanese government has criticized China for unilaterally announcing an extension of the suspension of preferential tariffs on Taiwanese imports, which were part of a bilateral trade agreement and are set to take effect from June 15.

Taiwan has “vigorously protested and expressed its dissatisfaction” with Beijing’s decision to further suspend tariff concessions on 134 Taiwanese products under the Economic Cooperation Framework Agreement (ECFA), Chiu Chui-Cheng (邱垂正), chairman of the Mainland Affairs Council (MAC), said in parliament on Friday.

Beijing’s move was “unilateral” and not in line with World Trade Organization rules, Chiu said, arguing it was intended as a “political maneuver” aimed at “putting pressure on Taiwan.”

The Chinese Ministry of Finance’s announcement on Friday affects a total of 134 items, including base oils for lubricants, racing bicycles and textile products manufactured in Taiwan.

This came less than two weeks after President Lai Ching-te (賴清德) of the Democratic Progressive Party (DPP) took office on May 20. Beijing also launched two days of military exercises around Taiwan and its offshore islands last week.

China had already targeted preferential tariffs under the ECFA in December 2023 and announced that it would eliminate the favorable import tariffs on twelve Taiwanese products, including propylene, paraxylene and other petrochemicals, from 2024.

At the time, China said the measures were a response to Taiwan’s ban on imports of Chinese goods, which it described as a “trade barrier.”

In a statement Friday morning, spokesman for China’s Taiwan Affairs Office Chen Binhua (陳斌華) attributed Beijing’s latest move to Taipei’s refusal to abide by the “1992 Consensus.”

Lai’s government has refused to recognize the “1992 Consensus,” has blatantly spread fallacies to promote Taiwan’s independence and separatism, and has incited division and economic decoupling across the Taiwan Strait, Chen said, without giving further details.

These measures have “seriously undermined the basis for cross-strait negotiations and the implementation of the ECFA,” leaving Beijing with no choice but to suspend further tariff concessions, Chen said.

The DPP has never recognized this consensus – a tacit agreement reached in 1992 between Taipei and Beijing – and argued that accepting the consensus would mean accepting China’s claim to sovereignty over Taiwan.

The opposition Kuomintang, on the other hand, always interpreted the consensus as an acknowledgment by both sides that there is only “one China,” with each side free to interpret what “China” means, even if Beijing has never publicly endorsed this interpretation.

In addition, the Chinese official said the planned suspension was also prompted by Taiwan’s ongoing import ban on over 2,500 Chinese goods.

Taiwan’s “discriminatory trade restrictions” on Chinese products violated the provisions of the ECFA, which require both sides to “gradually reduce or eliminate tariffs and non-tariff barriers to trade on the majority of goods,” Chen said.

In a statement released later Friday, the MAC – Taiwan’s main government agency for cross-strait affairs – called on China to stop its “economic pressure” and “resolve disputes through constructive dialogue (with Taiwan) without imposing political preconditions.”

The agency did not comment on Beijing’s complaint about Taiwan’s ban on Chinese imports.