The ministry “determined that Taiwan’s trade restrictions on the mainland constitute a trade barrier, with a negative impact on trade for related industries and enterprises in mainland China”.

A cross-strait trade and economic deal signed in 2010 said both sides should reduce or eliminate trade barriers, but the “scope of prohibited imports of mainland products has shown an expansion trend in recent years”, the ministry said.

Mainland China aims to cultivate farming ties with Taiwan amid tense relations

Measures taken by Taiwanese authorities have violated the commitment to reduce tariff and non-tariff barriers in the Economic Cooperation Framework Agreement (ECFA), which have hurt the interests of mainland companies and consumers in Taiwan, said Zhu Fenglian, spokeswoman for the office.

“We support relevant authorities investigating and taking corresponding measures in line with regulations, based on the full findings of the investigation,” Zhu said.

Beijing could potentially suspend all or part of the ECFA, analysts said. The agreement includes an 806-item list of goods approved for tariff reductions, and the list covers some of the items that mainland China investigated this year.

Mainland officials launched the probe at the request of domestic trade associations.

Mainland commerce authorities did not specify on Friday what the plan was to respond to the findings.

Taiwan’s Ministry of Economic Affairs said in a statement on Friday afternoon that Taiwan was ready to hold talks about its trade disputes with the mainland in accordance with the rules and mechanisms under the World Trade Organization (WTO).

The island’s Mainland Affairs Council said separately that the mainland’s probe violated WTO rules and was politically motivated.

“We cannot accept it,” it said.

The ruling Democratic Progressive Party in Taipei said the timing of mainland China’s trade probe was “obvious meddling in the election”, according to a statement on the party’s social media channel. The DPP takes a guarded view on cross-strait relations.

Mainland China may announce countermeasures closer to Taiwan’s January 13 presidential election, said Huang Kwei-bo, a professor of diplomacy at National Chengchi University in Taipei.

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Friday’s announcement, he said, is “a sign that this thing is still ongoing, and China can take countermeasures”.

“It’s not totally over,” Huang said.

Mainland authorities announced the probe results on Friday “in preparation” for the possible cancellation of the cross-strait trade deal, said Hu Jin-li, a professor with the Institute of Business and Management at National Yang Ming Chiao Tung University in Taipei.

Hu said a cancellation would be “very likely” if the ruling party wins the presidency and a parliamentary majority on January 13.

“Mainland China thinks that it unilaterally keeps yielding interests to Taiwan but receives no bilateral fair trade treatment,” Hu said. “Taiwan still restricts many items from mainland China and does not open its domestic market in exchange for the opening of the mainland market.”

02:28

Taiwan's opposition parties fail to form joint ticket for presidential election

Taiwan's opposition parties fail to form joint ticket for presidential election

Taiwan’s presidential election is expected to influence future cross-strait relations following nearly eight years of increased tensions. Mainland China sees self-ruled Taiwan as a breakaway territory that must be united with the mainland, by force if needed.

Mainland commerce authorities said in the probe report that Taiwan had set up measures to ban imports from the mainland since the ECFA took effect. The ministry said Taiwan had also expanded the list of import restrictions to 2,509 items from 2,455 when it had announced the probe.

Additionally, the ministry said that cross-strait trade has been “extremely unbalanced” over the last couple of decades, noting that the mainland’s trade deficit with the island soared by 397 per cent to US$156. 5 billion in 2022 from US$31.5 billion in 2002.

And commerce authorities estimated that the potential losses for mainland vegetable exports, largely banned from the island, could reach US$2.5 billion each year, and that the mainland could increase the value of textile exports by up to US$200 million if Taiwan were to loosen restrictions.