Mainland China sends ‘early warning’ ahead of Taiwan’s presidential election by suspending tariff cuts
- Twelve products from Taiwan under the Economic Cooperation Framework Agreement (ECFA) will be affected from January 1
- But analysts say the price of commodities is around 0.5 to 2 per cent of the total exports from Taiwan to mainland China
Beijing has sent an early warning against possible economic fallout should Taiwan’s election result next month lead to a further deterioration of ties, analysts said, as mainland China suspended tariff reductions on several Taiwanese products under a landmark trade-deal on Thursday.
Imports of 12 products from Taiwan, including propylene and paraxylene, covered by the cross-strait Economic Cooperation Framework Agreement (ECFA) would be affected from January 1, according to the Customs Tariff Commission of the State Council.
The ECFA, signed in 2010, includes an 806-item list of goods approved for tariff reductions.
But the value of the affected products are limited, analysts said, with mainland China’s imports of the 12 products representing only 1.1 per cent of its total import from Taiwan in the first 11 months of the year, according to Beijing’s customs figures.
The commission on Thursday accused Taiwan of “unilaterally adopting discriminatory measures against mainland exports,” saying the island’s prohibitions, restrictions and other measures violated provisions under the ECFA.