China will suspend tariff exemptions on 34 agricultural items imported from Taiwan, including fresh fruits, vegetables and aquatic products, effective from Sept. 25, China’s finance ministry said, a decision Taipei called “economic coercion.”
“Taiwan’s unilateral adoption of discriminatory measures such as bans and restrictions on the export of mainland products has seriously impeded cross-Strait economic and trade cooperation,” the ministry said on Wednesday, adding that tariffs on these items would be implemented in line with existing regulations.
Citing 2023 statistics, Taiwan’s Minister of Agriculture Chen Junne-jih said the annual tariff exemptions on these agricultural and aquacultural goods was nearly US$1.08 million.
Chen Binhua, a spokesperson for China’s Taiwan Affairs Office, said that since 2005, the tariff exemptions had helped Taiwanese farmers and fishermen expand their access to the Chinese market, bringing them “tangible benefits.”
But he blamed the administration led by President Lai Ching-te in Taiwan, for its “stubborn adherence” to a pro-independence stance.
Lai is a member of Taiwan’s ruling Democratic Progressive Party, which Beijing accuses of harboring separatist aspirations.
He came to power after winning a January election despite Beijing’s fierce opposition to his bid. He ran on a platform of promoting peace in the Taiwan Strait while not compromising on claims of Taiwanese sovereignty.
In response to China’s decision to suspend tariff exemptions, Taiwan’s Mainland Affairs Council, or MAC, said the cutting of the tariff exemptions represented a “weaponization” of trade and would harm the interests of farmers and fishermen on both sides of the Taiwan Strait.
Calling it “economic coercion,” the MAC added: “This only leads to resentment among Taiwan's farmers, fishermen and the general public, and does not contribute to the long-term development of cross-strait relations.”
The council said it was clear China was weaponizing trade and using preferential measures as tools of coercion, and it warned that the Chinese Communist Party's “goodwill” had political motives and could be revoked at any time.
China’s decision came after it announced sanctions on nine U.S. military-linked firms for their sale of equipment to Taiwan and denounced what it called the “dangerous trend” of U.S. military support for the democratic island.
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On Monday, the U.S. Defense Security Cooperation Agency announced the sale of aircraft spare parts and related logistics and support worth about US$228 million to Taiwan, adding that the spare parts would boost the island’s “ability to meet current and future threats.”
Washington’s arms sales to Taipei “seriously interfered in China’s internal affairs, and seriously damaged China’s sovereignty and territorial integrity,” said China’s Ministry of Foreign Affairs on Wednesday.
China regards Taiwan as a renegade province that should be reunited with the mainland, by force if necessary. The democratic island has been self-governing since it effectively separated from mainland China in 1949 after the Chinese civil war.
Despite their lack of formal diplomatic ties, the U.S. has long been a key supplier of arms to Taiwan. Washington is bound by U.S. legislation, the 1979 Taiwan Relations Act, to provide the island with arms for its defense.
Edited by Mike Firn.