China announced it would reinstate tariffs on 134 items imported from Taiwan, starting June 15. This move comes as part of Beijing's broader strategy to apply pressure on Taiwan, which China views as a breakaway province, amid increasing political and military frictions.
The Chinese Ministry of Finance declared the suspension of tariff concessions under the Cross-Strait Economic Cooperation Framework Agreement (ECFA), signed in 2010, citing Taiwan's alleged discriminatory measures against mainland Chinese products. The ECFA was intended to facilitate closer economic ties between China and Taiwan by reducing tariffs and trade barriers. However, according to China's finance ministry, Taiwan violated the agreement's provisions by prohibiting and restricting the export of over 2,500 mainland products.
"Chinese firms can either do business in our economies or they can equip Russia's war machinery with dual-use goods. They can't continue to do both," said U.S. Deputy Treasury Secretary Wally Adeyemo during a visit to Berlin. Adeyemo's comments highlight the international dimension of the economic and political tensions in the region.
The reinstated tariffs will affect various products, including base oils used in manufacturing lubricants, racing bicycles, and textile products. Taiwan's presidential office condemned the move as "classic Chinese economic coercion," stating that such actions will not improve relations across the Taiwan Strait. "China should abandon political intervention in the market and distorting the normal operation of the global economy with economic coercion," the office said.
Taiwan's Mainland Affairs Council (MAC), responsible for cross-strait policies, echoed this sentiment, urging China to resolve differences through constructive dialogue without political preconditions. "We call on the mainland to deal with differences through constructive dialogue that does not involve political prerequisites, and stop economic and trade pressure," said Chiu Chui-Cheng, head of the MAC.
This latest development follows a series of measures by Beijing aimed at pressuring Taiwan. In December, China terminated preferential tariffs on 12 Taiwanese chemical products, a move interpreted by Taipei officials as an attempt to influence Taiwan's January elections, which resulted in the victory of President Lai Ching-te.
Chen Binhua, spokesperson for China's Taiwan Affairs Office, justified the recent tariff reinstatement by accusing Taiwan of violating ECFA provisions and adopting discriminatory trade restrictions. "Taiwan's unilateral adoption of discriminatory measures violates the provisions of the agreement," Chen stated.
Beijing's actions are seen as a direct response to President Lai's administration, which has refused to acknowledge the "1992 consensus" - a tacit understanding between Taipei and Beijing acknowledging there is one China, with each side having its interpretation. Lai's Democratic Progressive Party (DPP) argues that acknowledging the consensus would imply agreeing to China's sovereignty over Taiwan.
In addition to economic measures, Beijing has increased its military pressure on Taiwan, conducting war games around the island. These exercises followed what Beijing viewed as a provocative inauguration speech by President Lai, whom it labels a separatist.
Taiwan, meanwhile, has maintained its stance against Beijing's sovereignty claims, calling for peaceful and constructive dialogue. "We call on China to stop its economic and trade pressure and to resolve disputes through constructive dialogue," the MAC reiterated.
