TAIPEI (Taiwan News) — Taiwan’s Presidential Office responded to reports that China will revoke preferential tariffs on 134 Taiwanese products on Friday (May 15), saying that such actions are typical of China as it tries to coerce Taiwan via economic policies.
Presidential Office Spokesperson Li Wen (李問) asked China to engage in dialogue and negotiate responsibly when it comes to economic disputes. He said that China’s actions are displeasing to the international community, and that Taiwan and China should settle their economic disputes under the framework of the World Trade Organization (WTO), reported CNA.
Earlier on Friday, China’s Ministry of Finance claimed that Taiwan violated the Cross-Strait Economic Cooperation Framework Agreement (ECFA) by implementing discriminatory policies targeting Chinese products. This was Beijing’s explanation for the newly increased tariff rates on a raft of Taiwanese goods that will be imposed starting June 15, reported Newtalk.
In China’s announcement this week, they claimed that Taiwan had taken no serious efforts to reduce trade barriers on Chinese products. Most of the new tariff hikes will target completed products related to Taiwan’s machine-based industries, including items like bikes, machine tools, and certain lubricants and oils.
In December, ahead of the presidential election in Taiwan, China suspended preferential tax rates on 12 key products for Taiwan’s petrochemical industry. In January, following the election, China announced it would revoke preferential tariff provisions on an additional 34 products from Taiwan’s agricultural and fishery industries.
There was even speculation that China may be about to scrap the ECFA entirely. Taiwan’s Ministry of Economic Affairs previously said that contingency plans were in place to deal with China’s efforts to limit cross-strait trade.
The ECFA was signed in 2010 under the administration of Ma Ying-jeou (馬英九) in an effort to boost economic ties with China and liberalize the domestic Chinese market. In recent years, China has unilaterally suspended portions of the preferential trade agreement to express their dissatisfaction with the DPP’s governance of Taiwan.